Shohei Ohtani's Record-Breaking MLB Contract: $680 Million Deferred Over 10 Years, Insider Reveals
Shohei Ohtani, MLB superstar, will astonishingly defer over 97% of his groundbreaking $700 million contract with the LA Dodgers until the agreement's 10-year term concludes, according to a trusted source
MLB superstar Shohei Ohtani has agreed to defer more than 97% of his record-setting $700 million contract with the Los Angeles Dodgers. A source familiar with the deal revealed that Ohtani will receive $2 million annually, while the remaining $680 million will be paid out after the 10-year term ends, starting from the 2033 MLB season.
"The idea for the substantial deferrals in this agreement originated from Shohei himself," the source disclosed to CNN. "He had been informed about the consequences and procedures of deferrals and believed it was the appropriate course of action. Therefore, as negotiations approached the final stage, Shohei made the decision to defer nearly all of his salary.
On March 20, 2023 in Miami, Florida, Shohei Ohtani #16 of Team Japan is seen before the World Baseball Classic Semifinals matchup against Team Mexico at loanDepot park. (Photo by Eric Espada/Getty Images)
Shohei Ohtani, a two-time AL MVP, has agreed to a groundbreaking deal with the Los Angeles Dodgers. "It was an easy decision for him, considering he is the highest earner in the game off the field," the source added.
The Dodgers chairman, Mark Walter, congratulated Shohei on his "historic contract" in a statement announcing Ohtani's signing on Monday night. Walter described Shohei as a "once-in-a-generation talent" and expressed excitement for the opportunity to work together to help the Dodgers excel on the field.
Ohtani's decision to agree to this unconventional deal stemmed from his dedication to winning and being a team player, as stated by the source. By deferring the payment of the hundreds of millions of dollars owed to Ohtani, the Dodgers will have the opportunity to allocate more funds towards surrounding the Japanese superstar with other high-caliber players.
Avoiding Ohtani's full salary will also benefit the team in terms of MLB's luxury tax threshold. According to the source, Ohtani's average annual value will be $46 million instead of the full $70 million. The 29-year-old Japanese player, who both pitches and bats as a designated hitter, announced his move from the Los Angeles Angels, where he had been playing since 2017, to the Dodgers on Saturday.
