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, multiple media outlets reported Monday.
Per the reports, 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.
In exchange for the deferred money, Ohtani received a full no-trade clause for the entire 10 years of the pact, USA Today reported.
The contract—which was finalized Monday evening—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.
With the announcement of the signing, Ohtani said in a statement issued by the club, “Dodger fans, thank you for welcoming me to your team. I can say 100 percent that you, the Dodger organization and I share the same goal—to bring World Series parades to the streets of Los Angeles.”
Dodgers owner Mark Walter added in a statement, “On behalf of the L.A. Dodgers and our fans everywhere, we welcome Shohei Ohtani to the Dodgers, the home of Jackie Robinson, Sandy Koufax and Hideo Nomo, three of the sport’s most legendary and pathbreaking players. We congratulate him on his historic contract with our storied franchise.
“Shohei is a once-in-a-generation talent and one of the most exciting professional athletes in the world. Our players, staff, management and ownership look forward to working together with Shohei to help the Dodgers continue to add, improve and strive for excellence on the field. Together with Shohei, we will work to help grow the number and breadth of people around the world who enjoy the excitement of Major League Baseball.”
