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Shohei Ohtani's monstrous $700 million deal came with unprecedented deferrals that will see him making just $2 million per year during the duration of his playing contract with the Los Angeles Dodgers. Ohtani will receive the rest — all $680 million of them — from 2034 to 2043. Furthermore, only $46 million will count on the Dodgers' CBT.
Details of Ohtani's deal were revealed on Monday and this drew mixed reactions around the MLB.
Some were understandably distraught about how the Dodgers navigated the system.
“Most agents would probably say it’s the worst thing ever, because that’s what happens when some guy does a record deal,” said a player agent, via Evan Drellich and Ken Rosenthal of The Athletic. “I think actually in this case, it’s the truth: It’s one of the worst things I’ve ever seen, for a lot of reasons.”
“It’s a f—ing joke,” one team executive said of the contract structure. “It’s a complete joke. … This f—ing guy is going to get paid for 20 years.”
Meanwhile, some applauded Ohtani and his agent for the move.
“If you zoom out and look at it from a life-planning perspective, it makes a ton of sense,” one GM said. “He has now pushed back the bulk of his earnings to a time where he might not have quite the same annual earnings, 10 or 12 years from now. Then he will start receiving these payments.”
“Everyone loves to criticize, but this contract is a brilliant move by Ohtani and Andrew (Friedman of the Dodgers), and they should be applauded,” a different agent said. “Ohtani wants to win, and this structure lowers the cap hit, which enables the club to add star players. I’m betting that the Dodgers will also sign (Japanese free-agent right-hander Yoshinobu) Yamamoto.”
Not only does the move make sense for Ohtani's finances, it also made a ton of sense for Los Angeles' salary books. The contract would allow the franchise to sign more players in free agency without having to be worried about the luxury tax.
There are rumors going around that the 29-year-old also asked the Toronto Blue Jays and the San Francisco Giants for the same contract structure, so this wasn't just a Dodgers exclusive. The Blue Jays also reportedly offered Ohtani a deal within the same ballpark as what he received from Los Angeles.
While everyone has their own opinion on Shohei Ohtani's $700 million contract, the Dodgers' Japanese superstar will be happily in his own money until 2043.
