MLB All-Star weighs in on Shohei Ohtani's Dodgers contract - "I’ve watched too many post-apocalyptic movies"
Shohei Ohtani declared on Saturday afternoon that he would sign a contract with the Los Angeles Dodgers. The record-breaking deal is for $700 million over 10 years.
In the history of sports, this deal is the biggest. The two-time MVP has an extremely intricate record-setting contract, but over 10 years, he will not receive a salary of $70 million annually.
The agreement is noteworthy for how it is being paid out and its overall financial amount. To be precise, the former Angels slugger and the Dodgers have included enormous deferrals on a scale never witnessed in Major League Baseball.
To allow the Los Angeles Dodgers to maintain spending on players such as Ohtani, Mookie Betts, and Freddie Freeman, Ohtani consented to defer all but $2 million of his $70 million salary each year until the contract was completed. From 2034 to 2043, the deferred funds will be paid without interest.
Thanks to this unique arrangement, the Dodgers hope to gain more flexibility with payroll and cash flow. The Japanese star is still making significant money off of endorsements and off-field endeavors. As for what this means for Shohei Ohtani's taxes in 10 years, that is a separate matter.
The Dodgers would not have been able to spend an additional $23.94 million a year against the luxury tax thresholds if they had paid him his entire salary in current dollars without the deferred money.
Oakland Athletics outfielder Brent Rooker tweeted on his X handle:
"I've watched too many post-apocalyptic movies and shows to defer any money that far into the future. (I'm also not good enough at baseball to have the option to do so)."
Shohei Ohtani's contract compared to other MLB deals
Baseball has seen some incredible contracts, like Shohei Ohtani's $700 million pay package. Mike Trout's $426.5 million deal comes in next, while Aaron Judge is one of the highest-paid players after his $360 million agreement.
Looking at some of the other contracts, Manny Machado signed a $350 million deal, while Francisco Lindor, who has signed a $341 million contract. These astronomic values demonstrate the huge significance that each team attaches to their players, but will the money end up damaging the game?