Reports: Shohei Ohtani's Dodgers deal includes $680M deferred

Field Level Media|published: Mon 11th December, 18:57 2023

Sep 16, 2023; Anaheim, California, USA; Los Angeles Angels two-way player Shohei Ohtani (17) in the dugout during the seventh inning against the Detroit Tigers at Angel Stadium. credits: Kiyoshi Mio-USA TODAY Sports

Shohei Ohtani agreed to defer $680 million of his 10-year, $700 million deal with the Los Angeles Dodgers until after the contract is completed, The Athletic and ESPN reported Monday.

Per the report, Ohtani suggested the deferrals and will be paid $2 million per season for the duration of the contract, then will receive the deferred money without interest from 2034 to 2043.

The contract — which is expected to be finalized soon — will allow the Dodgers to continue spending around Ohtani and fellow stars Mookie Betts and Freddie Freeman, providing the club with payroll flexibility and cash flow.

The two-way superstar from Japan isn't hurting for money, as he rakes in $50 million per year away from baseball via endorsements and other ventures, per the reports.

Regarding the competitive balance tax, or luxury tax, the expected average annual value of the contract is close to $46 million per year, the reports said. That allows the Dodgers more room to navigate the CBT and remain in the hunt for top free agents like Japanese right-handed pitcher Yoshinobu Yamamoto and Tampa Bay Rays right-hander Tyler Glasnow.

"(Ohtani) is excited to begin this partnership, and he structured his contract to reflect a true commitment from both sides to long-term success," Ohtani's agent, Nez Balelo, said in a statement at the time the deal was announced.

—Field Level Media

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