Shohei the Time Value of Money: John Authers

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Moneyball

Fervent thanks should go to Shohei Ohtani, the Japanese baseball star who at the weekend signed a 10-year contract worth $700 million to move to the Los Angeles Dodgers. That’s the biggest contract ever for a baseball player. But now, we have the details of how it’s structured, and that turns it into one of the best financial stories in years.

Ohtani’s money is going to be back-loaded. Essentially, he and his agents negotiated, “Show me the money, but not yet.” Indeed, ...