Deferred Dodger: Ohtani\’s Game-Changing Move

December 12, 2023 Deferred Dodger: Ohtani\’s Game-Changing Move

By: Carlos Alvarez

Shohei Ohtani’s Record $700 Million Contract Has One Mind-Blowing Caveat — $680 Million in Deferred Payments

Long game, personified. Bobby Bonilla is laughing somewhere…

 

If you didn’t have enough reasons to love Shohei Ohtani (not you, Angels fans… sorry), you might now. The newly-anointed highest-paid athlete in the world signed a 10-year, $700 million contract with the Dodgers on Saturday. You probably heard about it. But you might not have heard the tricky little caveat that makes the Dodgers downright unstoppable in the years ahead — deferred payments. As the details of Ohtani’s mega-contract continue to unfold, the two-way superstar reportedly wants just $2 million of his $70 million annual salary to be paid out each year. That means Shohei will make just $20 million over the next 10 seasons (2024-2033) with the remaining $680 million to be paid out from 2034-2043. A contract this size was always going to include deferred payments, but this much?

 

Sho Me The Money… Later On

The unique contract twist isn’t the first of its kind. Many baseball players have done something similar in the past. Most notably, the Mets pay Bobby Bonilla $1.19 million every July due to a deferred contract, and he hasn’t played since 2001. So why would Shohei do it with the world’s largest contract? Off-the-field sponsorships and a team-first mentality. The decision was reportedly Ohtani’s idea, according to multiple league sources, and it makes sense. Ohtani is the MLB’s highest-paid off-the-field earner from sponsorships. He also wants the Dodgers to be able to afford talent and keep winning. They could be downright unstoppable during his 10-year window. After he’s done playing, the bill comes due.

 

Can the MLB Do Anything?

Nope. The league’s collective bargaining agreement states: “there shall be no limitations on either the amount of deferred compensation or the percentage…” So you go, Sho. The Dodgers have Ohtani on $2 million per year. That’s less than half the MLB average ($4.2 million).

 

Just like “Bobby Bonilla Day” every July 1, we’ll be having “Shohei Ohtani Day” in the 2040s. The Dodgers just rigged the system. Or did Ohtani just rig baseball?

 

Read More

Forbes: Shohei Ohtani’s $700 Million Deal Reportedly Includes $680 Million in Deferrals

The Athletic: Shohei Ohtani’s Massive Deferrals, Dodgers Contract Explained

 

Photo: Megan Briggs / Getty Images