With Ohtani’s decision to sign with Los Angeles, the biggest free-agent drama in MLB history came to a conclusion.
Ohtani will postpone $68 million annually in a historically large deal.
A person familiar with the provisions of Shohei Ohtani’s record-breaking 10-year, $700 million contract revealed to The Athletic on Monday that the pact includes a number of first-ever deferrals.
To allow the Los Angeles Dodgers to maintain their spending on players such as Ohtani, Mookie Betts, and Freddie Freeman, Ohtani consented to postpone all but $2 million of his $70 million pay each year until after the contract was completed. From 2034 to 2043, the postponed funds are to be disbursed without interest.
The individual briefed on the agreement told The Athletic that Ohtani himself recommended the previously undisclosed deferrals when the sum shot up to $700 million during the discussions. It’s anticipated that the purchase will close soon.
The Dodgers hope to have more payroll flexibility and cash flow with this odd arrangement. Ohtani is still making a lot of money off of endorsements and off-field activities in the interim. Ohtani reportedly earns $50 million a year away from the diamond, according to the person briefed on the terms who spoke with The Athletic.
