Shohei Ohtani was said to have deferred a lot of money in signing with the Los Angeles Dodgers, and now we know exactly how much.
Ohtani is deferring all but $2 million per year of his $70 million salary over the course of the deal, according to Fabian Ardaya of The Athletic. The remaining $68 million per year will be paid out without interest after the expiration of Ohtani’s 10-year deal, from 2034 to 2043.
In essence, the Dodgers will only owe Ohtani $20 million over the next ten years, leaving $680 million to be paid out to him starting in 2034. That will allow the Dodgers significant payroll flexibility for now. It will also bring Ohtani’s average annual value down to roughly $46 million, which is the number that will count against the annual luxury tax bill, as opposed to the $70 million average.
Ohtani is giving up a ton of money in the short term, but he does not really need it. The two-way star is thought to earn roughly $50 million per year from endorsement deals and other ventures, which will take care of him in the meantime. Plus, Ohtani was not reluctant about this aspect of the deal; he is the one who suggested it to the Dodgers.
Eventually, the Dodgers will owe Ohtani a ton of money, but that is a future problem. For now, they have a much freer hand to load up on as much talent as possible so their two-way star will get his wish to play for and win with a consistent contender.
