Shohei Ohtani has agreed to defer $680m of his 10-year, $700m deal with the Los Angeles Dodgers until after the contract is completed, The Athletic and ESPN reported on Monday.
According to the reports, Ohtani suggested the deferrals and will be paid $2m a season for the duration of the contract, then will receive the deferred money without interest from 2034 to 2043.
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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 reportedly earns $50m a year away from baseball through endorsements and other deals.
Regarding the competitive balance tax, or luxury tax, the expected average annual value of the contract is close to $46m per year, the reports said. That allows the Dodgers more room to remain in the hunt for top free agents such as 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.