Shohei Ohtani’s decision to structure his historic 10-year, $700 million contract with the Los Angeles Dodgers included a remarkable deferral agreement. By deferring $680 million of his salary, Ohtani has made an unprecedented sacrifice to help the team build a more competitive roster. This deal means he will only receive $2 million annually during the life of the contract, with the remaining $68 million per year deferred until 2034, when the Dodgers will begin paying him at that level for the next decade.
Ohtani himself proposed this structure, aiming to reduce the financial burden on the Dodgers under the luxury tax (competitive balance tax). By deferring nearly 97% of his salary, Ohtani allowed the Dodgers to maintain flexibility in building a stronger team around him. This will enable them to continue pursuing top-tier talent, ensuring that Ohtani’s goal of winning a World Series every year remains within reach. Moreover, Ohtani’s endorsement deals, which are expected to generate substantial income, will help offset the deferred salary.
The Dodgers have made a promise to Ohtani as part of this agreement, committing to fielding a competitive team that can contend for championships during his contract, fulfilling both their and Ohtani’s shared aspirations.
Shohei Ohtani’s decision to structure his historic 10-year, $700 million contract with the Los Angeles Dodgers included a remarkable deferral agreement. By deferring $680 million of his salary, Ohtani has made an unprecedented sacrifice to help the team build a more competitive roster. This deal means he will only receive $2 million annually during the life of the contract, with the remaining $68 million per year deferred until 2034, when the Dodgers will begin paying him at that level for the next decade.
Ohtani himself proposed this structure, aiming to reduce the financial burden on the Dodgers under the luxury tax (competitive balance tax). By deferring nearly 97% of his salary, Ohtani allowed the Dodgers to maintain flexibility in building a stronger team around him. This will enable them to continue pursuing top-tier talent, ensuring that Ohtani’s goal of winning a World Series every year remains within reach. Moreover, Ohtani’s endorsement deals, which are expected to generate substantial income, will help offset the deferred salary.
The Dodgers have made a promise to Ohtani as part of this agreement, committing to fielding a competitive team that can contend for championships during his contract, fulfilling both their and Ohtani’s shared aspirations.
Shohei Ohtani’s decision to structure his historic 10-year, $700 million contract with the Los Angeles Dodgers included a remarkable deferral agreement. By deferring $680 million of his salary, Ohtani has made an unprecedented sacrifice to help the team build a more competitive roster. This deal means he will only receive $2 million annually during the life of the contract, with the remaining $68 million per year deferred until 2034, when the Dodgers will begin paying him at that level for the next decade.
Ohtani himself proposed this structure, aiming to reduce the financial burden on the Dodgers under the luxury tax (competitive balance tax). By deferring nearly 97% of his salary, Ohtani allowed the Dodgers to maintain flexibility in building a stronger team around him. This will enable them to continue pursuing top-tier talent, ensuring that Ohtani’s goal of winning a World Series every year remains within reach. Moreover, Ohtani’s endorsement deals, which are expected to generate substantial income, will help offset the deferred salary.
The Dodgers have made a promise to Ohtani as part of this agreement, committing to fielding a competitive team that can contend for championships during his contract, fulfilling both their and Ohtani’s shared aspirations.