Soundwave
Registered User
- Mar 1, 2007
- 74,036
- 30,199
Spreading it out is to the team's advantage. The longer the deferral the more discounted the cap hit. Of course from a player's perspective the less valuable the contract. The Ohtani deal is spread out over ten years. The reason a player might do that is to mitigate taxes.
It's kind of tricky because in theory having it as one single pay day could make it easier for the player to find temp residence in a low tax place (like say Switzerland or Bahamas or Dubai), get the deferred money at a very low bracket and then you're basically free to move somewhere else after that if you want.
I guess it would depend on the player. It also mitigates to an extent the whole "make your money work for you asap" as you'd get the money quicker.
At the end of the day really, if we can get 1.5-2 mill off Leon's AAV, maybe 0.5-1m off Bouchard's, and 1.5-2 mill off Connor's AAV ... it really doesn't matter how it's structured as long as it's good for the player.