New York Mets owner Steve Cohen unfazed by luxury tax woes in quest for two-way phenom Shohei Ohtani
Shohei Ohtani, MLB's hottest commodity right now, is set to become a free agent at the end of the season. Many predict his new contract to smash records. Steve Cohen-owned New York Mets are certainly expected to be one of the frontrunners to obtain his signature, despite the staggering finances involved.
Ohtani has taken the MLB by storm since making his debut in 2018. He was adjudged the American League's Most Valuable Player (MVP) in 2021 but lost out on the honor to New York Yankees star Aaron Judge last season.
In his column for the New York Post, Jon Heyman talked about how much Cohen would be willing to pay to land the two-way superstar:
"While Cohen has risk tolerance we’ve never seen before, he does have limits. He lost Carlos Correa since he wouldn’t have matched the $33M salary in the Twins’ deal, which would have resulted in $63M for him counting the 90 percent Steve Cohen tax.
What’s more, the Cohen tax will rise to 110 percent for third-time payors in 2024, so if Ohtani’s deal is for $50M a year, that’d be $105M for Cohen., which would have resulted in $63M for him counting the 90 percent Steve Cohen tax. That potential $105M annual outlay for Ohtani alone is enough to discourage anyone. Almost anyone, anyway."
Here’s one Mets person regarding Ohtani:
“The Mets will make Ohtani the best-paid player in the history of sports — whether he plays for the Mets or not — because the offer will be insane. And if someone else wants to beat it go ahead.”
nypost.com/2023/01/30/ste…
It's worth noting that the MLB luxury tax threshold was raised by $20 million to $230 million in 2022. Cohen tax refers to the newest fourth tier, which according to ESPN, is reached when a team's payroll crosses $290 million.
Teams who cross this threshold for the first time are taxed 80% on the total amount exceeding the $290 million limit. Second-time offenders are taxed 90%, while the tax is 110% for crossing the threshold for the third time.
Options for Shohei Ohtani
While it's being speculated that his next contract will exceed $500 million, the New York Mets are not the only team who can provide Ohtani with this paycheque.
The big challenge now for Moreno, 76, is what to do about his 28-year-old superstar, Shohei Ohtani. The most prolific two-way player since Babe Ruth becomes a free agent after the 2023 season and might command a $500 million contract. trib.al/KGKxapb https://t.co/6XWa9kRH5V
The LA Dodgers and the San Francisco Giants have also been touted as favorites to land the player. The end of the season may be far away, but the battle for Shohei Ohtani has already begun.