Shohei Ohtani’s groundbreaking $700 million contract with the Los Angeles Dodgers comes with a unique financial structure that provides the National League powerhouse with increased flexibility throughout the deal.
The superstar, known for his dual pitching and hitting abilities, inked a historic 10-year agreement with the Dodgers, making it the most lucrative contract in the history of professional sports. This contract surpasses the $674 million deal signed by soccer legend Lionel Messi with Barcelona FC in 2017.
Here’s the remarkable aspect of Ohtani’s contract, as revealed by Fabian Ardaya of The Athletic: While his annual salary under the contract stands at $70 million, Ohtani will only take home $2 million per year and choose to “defer” the remaining amount.
This unique contract structure enables the Dodgers, a team known for its substantial financial commitment, to allocate their resources efficiently and maintain their competitive edge as they continue to build a formidable team around the two-time American League MVP.
According to ESPN’s Alden Gonzalez, Ohtani will receive the deferred sum of $680 million between 2034 and 2043. Additionally, sources suggest that Ohtani’s endorsements bring in over $45 million annually, ensuring that he continues to earn a substantial income as a member of the Dodgers.
Prior to Ohtani’s record-breaking contract, Mike Trout, his former teammate with the Los Angeles Angels, held the title for the largest MLB contract. In 2019, the future Hall of Famer signed a 12-year extension worth $426.5 million.
Ohtani is set to make his debut appearance for the Dodgers on March 20 against the San Diego Padres, kicking off the 2024 MLB season with a game in Seoul, South Korea.