Shohei Ohtani Deferred Contract with the Dodgers

Shohei Ohtani Deferred Contract with the Dodgers-It’s Done and Official

There is some outrage brewing from Ohtani’s shocking $700 million agreement. Small markets feel as though they can not compete with a franchise with unlimited pockets and the ability to work “loopholes” in their favor. Others feel that this free agent signing and it’s structure; does not help to move the needle for larger salaries for other MLB players. Nevertheless, regardless on how fans and other franchises feel, the fact is that the Shohei Ohtani deferred contract with the Dodgers is official and a done deal.

The MLB is not stopping things. The Dodgers are now stronger. However, other teams still have a shot at winning too still.

The Dodgers are in the same boat as many other ball clubs. In desperate need of pitching. From starting pitchers to reliefs. They need guys with talent and that can stay healthy. And most importantly, contribute something, ANYTHING in the postseason.

Bad pitching is majorly becoming the Dodgers’ kryptonite. During the 2023 playoffs the franchise experiences massive catastrophes, like Kershaw giving up numerous runs right at the beginning of the series. The same series in which they would be one and done.

Therefore, there is still some work for LA to do. Shohei Ohtani is well aware of this fact. And that’s why he devised a plan. A plan where he will not see much pay from his contract until years from now. Such a contract will allow him to be a Dodger and for the club to build a super team around him. Smart.

Ohtani Deal With the Los Angeles Dodgers- How it Will Work?

So how will all of this work? What will Ohtani’s deal be like? ESPN’s Jeff Passan reports,

“The structure of the deal, first reported by Fabian Ardaya (FYI… this guy covers Dodgers news for The Athletic), is unprecedented. Multiple people involved have said Ohtani proposed the structure and that toward the end of negotiations he said he wanted to defer his salary. His off-the-field earnings are significant enough for it.

Shohei Ohtani’s $700 million contract calls for him to be paid only $2 million a year for the next 10 seasons, with $680 million deferred until the end of the deal, sources confirm to ESPN.

The CBT hit on the contract is going to be around $46 million, a huge discount for L.A.

For anyone wondering if MLB will challenge or cancel Ohtani’s contract: The answer is unequivocally no. There is a specific article in the collective-bargaining agreement that addresses this. And it’s very clear: Deferred money is limitless — even $680 million of $700 million.

Shohei Ohtani’s contract with the Los Angeles Dodgers is now official.”

Shohei Ohtani Deferred Contract with the Dodgers-It’s Done and Official

WILD. However, this just goes to show how much Ohtani wanted to play for the Los Angeles Dodgers; and how much he wants to win. With this type of contract structure the blue men will also still have funds available to build a roster around Shohei in order to win a World Series… or two.

Regarding some final details about Ohtani’s deal. ESPN’s Alden Gonzalez explains how Shohei will get paid when it is finally time for the Dodgers to pay up. Alden reveals,

“As a Dodger, Shohei Ohtani will make $20M from 2024 to 2033 and $680M from 2034 to 2043. He is deferring more than 97% of his historic contract, made easier by the fact he makes close to $50M annually in off-the-field revenue.”


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