Shohei Ohtani defers $68 million in historic deal with Dodgers

Shohei Ohtani – Shohei Ohtani (cropped 2) – CC BY-SA

Japanese baseball star Shohei Ohtani reached a 10-year, $700 million deal with the Los Angeles Dodgers with “unprecedented” deferrals.

According to The Athletic, Ohtani deferred $68 million of his $70 million average yearly salary while collecting the remaining $2 million until his contract concludes in 2034. Dodgers will pay the deferred salary without interest from 2034 to 2043.

Further details revealed Ohtani deferred the money to ensure the Dodgers have the extra cash flow to create their championship contender with Ohtani. On his own, Ohtani continues collecting revenue from endorsements and off-the-diamond activities, amounting to roughly $50 million each year.

“What if I defer all my salary so that my team has a better chance to compete?” said Ohtani to his agent Nez Balelo last month when the player became a free agent.

This endorsement income, in addition to Ohtani’s previous $42 million income from the Los Angeles Angels, may also have been a factor in his willingness to defer most of his salary with the Dodgers.

Before Ohtani broke the deferral record, former Washington Nationals pitcher Max Scherzer had previously deferred 50 percent of his $210 million contract with a $50 million signing bonus for over 14 years up[on joining the Nationals in 2015.

‘No player like him’

Balelo said he was not surprised with Ohtani’s deferral decision after spending years working with the 29-year-old pitcher-hitter, although he admitted that this amount of deferral is unprecedented.

“There have been a few at 20%, maybe 30%, but nothing like this. I’ve been with him for seven years. At this point I am not surprised by what he does because he is always going to go down a path no one else takes,” said Balelo, as quoted by Sports Illustrated.

Although Balelo did not mention further details in the contract, he said Ohtani asked the Dodgers to make good use of the deferred money to build and develop the Dodgers to new heights.

“There is no player like him,” Balelo said, “and so it is fitting there is no contract like this one.”