Dodgers co-owner Stan Kasten talks about Shohei Ohtani's 97% deferred deal - "A player willing to stake so much of himself into the process was great"
LA Dodgers president Stan Kasten opened up about his first reactions to knowing the Shohei Ohtani contract breakdown. In a recent interview with MLB Network Radio on SiriusXM, Kasten said he was taken aback by the Ohtani camp's request that, even at that juncture, they be rigid to comply with a manageable arrangement that would satisfy the two-way ace, which it did.
"My first reaction was, 'Would you please repeat that please?'" Stan Kasten said on Ohtani's deferred contract. "But then I understood, a player willing to stake so much of himself into the process was great."
The Ohtani camp had reportedly asked the Dodgers president to defer Shohei Ohtani's 97% salary in payments after his contract ends, which means that "Shotime" will earn $2 million per year for the next ten contractual seasons and then receive a deferred salary of $68 million every year from 2034 to 2043.
Because of how MLB calculates the deferrals, Ohtani's compensation will still count against the $46 million maximum. At Dodger Stadium on Thursday, the 29-year-old made his official appearance as a Dodger and explained his decision to withhold more than 97% of the money until after the contract expires.
"I was looking into it, doing some calculations, and I figured if I can defer as much money as I can, that’s gonna help the (collective bargaining tax)," Ohtani said during the Dodgers introduction event. "That’s gonna help the Dodgers and be able to sign better players and make a better team.
"I felt like that was worth it, and I was willing to go in that direction. That’s why I made that choice."
Ohtani was the major league leader at the plate with a 1.066 OPS and a .654 slugging percentage in 2023. His 44 home runs ranked fourth, his .412 on-base percentage was second and his .304 average was ninth.
The Japanese phenom was 10-5 on the mound in 132 innings pitched, with a 3.14 ERA and 167 strikeouts. His K/9 was sixth among pitchers with 130 innings pitched, and his ERA was the ninth-lowest in the majors.
Shohei Ohtani is finally introduced at Dodger Stadium
Shohei Ohtani, a 29-year-old who signed an unprecedented 10-year, $700 million contract with the LA Dodgers last week, was introduced to the media on Thursday.
"I just saw my contract was 10 years. I’m not sure how long I will be able to play the game, so I do prioritize winning," Ohtani said on signing with the Dodgers.
Shohei Ohtani is hardly the only MLB player to postpone payment. Ken Griffey Jr. and Bobby Bonilla were among the athletes who selected annual payouts. Those in Bonilla's instance included an 8% interest rate guarantee. However, most of Ohtani's deal, or $680 million in payments, will be paid to him interest-free between 2034 and 2043.