Is Shohei Ohtani Bad At Money?

I'm not talking about that controversy from last year. I'm talking about the reality of the currency in which he's paid.

Dear Fellow Traveler:

Last year, Japanese baseball phenom Shohei Ohtani (and anchor on my fantasy baseball team) signed his record-breaking $700 million contract with the Los Angeles Dodgers.

The deal shook up professional sports. But not just because of the size of his contract. It was the structure that blew people away.

Ohtani was in win-now mode.

So, he accepted a deal that would pay him just $2 million a year for 10 years.

That other $680 million would be deferred, without interest.

He will receive that money from 2034 to 2043.

Now… Ohtani is from Japan. His contract is governed in the U.S.

So he’s paid in U.S. dollars.

Whoops…

I think that he made a big mistake…

Naturally, people would say the lack of interest would be a concern.

After all, isn’t inflation going to eat away at that contract?

Yes, it is…

But there’s a second, more insidious force at work.

Let me explain.

Beyond Inflation

Inflation measures rising consumer prices.

You know it as what you pay for groceries, gas, and housing…