Report: Davis deal has present-day value of $148M

The Major League Baseball Players' Association has reportedly assigned a present-day value of $147.7 million to the record-breaking $161-million contract Chris Davis finalized with the Baltimore Orioles on Thursday.

Sources tell Ken Rosenthal of FOX Sports that the reduction was a result of the $42 million in deferred money included in the deal. Multiple reports indicated that Davis will collect $3.5 million per year from 2023 through 2032, followed by annual payments of $1.4 million from 2033-37.

The impact of the adjustment is significant in the landscape of all-time contract rankings, though it may not have as big of an effect on Davis' bottom line. Rosenthal previously reported that should Davis remain a resident of Texas, he won't have to pay state income tax on the $42 million in future earnings.

At a total value of $161 million, Davis' franchise-record deal would be the sixth-largest contract ever awarded to a first baseman, and tied for 20th among all-time contracts. After factoring in the union's adjustment, however, Davis' deal would be only the 30th-richest in baseball history, and eighth-biggest at his position.