The Dodgers and Shohei Ohtani agreed to terms on a historic $700 million contract which will see him play for the franchise through the 2033 season.
Ohtani’s contract, which is the richest in professional sports, will actually only pay the two-way superstar as little as $2 million per season, according to Fabian Ardaya of The Athletic.
Per the report, Ohtani has agreed to defer a staggering $680 million of the $700 million deal until after the expiration of the contract. As such, Ohtani will collect just $2 million annually until after the 2033 season, at which point the remaining money will be paid over the course of 10 years, until 2043, with interest.
The deferred money will allow the Dodgers to remain competitive in this offseason’s free agency as they look to build an even more formidable roster around the 29-year-old.
Shohei Ohtani’s contract with the Dodgers will pay him in deferrals until 2043, with interest.
D. Ross Cameron-USA TODAY Sports
In terms of MLB’s Competitive Balance Tax (CBT), Ohtani’s deal will represent an annual hit of $46 million, a massive discount.
The Athletic reports that Ohtani earns as much as $50 million per year in off-field revenue, including endorsements and other financial ventures.
The decision to defer the massive sum of money was reportedly a suggestion from Ohtani himself.
The additional spending room could enable the Dodgers to continue to be major players in free agency, including the potential to bolster their starting rotation with a run at fellow Japanese star Yoshinobu Yamamoto, who has drawn significant interest from the likes of the Mets and Yankees.
