Ohtani will defer $68 million per year of his salary!!!

Shohei Ohtani’s record-setting 10-year, $700 million deal includes a series of unprecedented deferrals, a person briefed on the terms told The Athletic on Monday.

In an effort to enable the Dodgers to continue spending around stars Ohtani, Mookie Bettsand Freddie Freeman, Ohtani agreed to defer all but $2 million of his annual salary — $68 million of his $70 million per year — until after the completion of the contract. The deferred money is to be paid out without interest from 2034 to 2043.

The previously unreported deferrals were said to be suggested by Ohtani himself as the negotiations vaulted the figure towards $700 million, the person briefed on the terms told The Athletic. The deal is expected to soon be finalized.

The unusual structure is intended to provide the Dodgers additional cash flow and payroll flexibility. In the meantime, Ohtani continues to bring in big dollars elsewhere from endorsements and off-the-field ventures. Ohtani is believed to make $50 million per year annually away from the diamond, the person briefed on the terms told The Athletic.

The deferrals also give Dodgers extra freedom navigating the competitive balance tax, or luxury tax as it’s called. For CBT purposes, the expected average annual value on the contract is said to be closer to $46 million per year, the person briefed on the terms said. The Dodgers remain in the mix at the top of the market, particularly for pitching, with free-agent Japanese right-hander Yoshinobu Yamamoto and Rays right-hander Tyler Glasnow among their targets.

Ohtani’s contract went well past the $426.5 million his former Angels teammate, Mike Trout, received in the previous record deal. Ohtani’s agent at Creative Artists Agency, Nez Balelo, hinted at the deferral arrangement when Ohtani’s decision to join the Dodgers was announced.

“He is excited to begin this partnership, and he structured his contract to reflect a true commitment from both sides to long-term success,” Balelo said in a statement at the time.

theathletic.com

Shohei Ohtani’s record-setting 10-year, $700 million deal includes a series of unprecedented deferrals, a person briefed on the terms told The Athletic on Monday. In an effort to enable the Dodgers to continue spending around stars Ohtani, Mookie Betts and Freddie Freeman, Ohtani agreed to defer all but $2 million of his annual salary — $68 million of his $70 million per year — until after the completion of the contract. The deferred money is to be paid out without interest from 2034 to 2043. The previously unreported deferrals were said to be suggested by Ohtani himself as the...