Shohei Ohtani to defer $68 million per year in new contract with the Dodgers (report)
Shohei Ohtani’s record-setting 10-year, $700 million deal will have a series of deferrals that will allow the Dodgers to pay the superstar $68 million of his $70 million, per year - after his contract is completed, according to ESPN’s Jeff Passan.
In an effort to continue to field a strong roster around Ohtani, Mookie Betts and Freddie Freeman, the Japanese superstar will defer his entire salary with the exception of $2 million per season.
The deferred money is to be paid out without interest from 2034 to 2043.
The unprecedented structure of Ohtani’s deal will allow the Dodgers will additional cash and payroll flexibility. The 29-year-old will be able to field endorsements off-the-field. Ohtani is believed to make roughly $50 million per season away from the baseball diamond, per The Athletic.
For CBT purposes, the expected average annual value on the contract is said to be about $46 million per year.
Ohtani’s contract will allow the Dodgers to be in the hunt for 25-year-old Japanese ace Yoshinobu Yamamoto.
“He 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 Los Angeles Dodgers have officially announced the 10-year contract with Ohtani on Monday night.
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