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Shohei Ohtani’s record 10-year, $700 million deal includes an unprecedented series of extensions, a person said on the terms. The Game on Monday.
In an effort to allow the Los Angeles Dodgers to continue spending on stars Ohtani, Mookie Betts and Freddie Freeman, Ohtani agreed to defer all but $2 million of his annual salary — $68 million of his $70 million a year — until finish the job. contract. The deferred amount must be paid without interest from 2034 to 2043.
The previously unreported delay was said to have been suggested by Ohtani himself because of negotiations that raised the figure to $700 million, the person explained on condition. The Game. The agreement is expected to be finalized soon.
The unusual structure is expected to give the Dodgers additional cash and salary flexibility. Meanwhile, Ohtani continues to bring in big news elsewhere from endorsements and businesses off the field. Ohtani is believed to earn $ 50 million a year annually from the diamond, the person explained on the terms. The Game.
The delay also gives the Dodgers additional freedom to navigate the competitive balance tax, or luxury tax as it is called. For CBT purposes, the estimated annual cost of the contract is estimated to be approximately $46 million per year, the sources said. these conditions. The $46 million annual average is still the highest in MLB history, surpassing the $43.3 million average annual salary that Max Scherzer received by agreeing to a three-year contract with the New York Mets in 2021.
Baseball’s collective bargaining agreement clearly states that there is no limit to the amount of salary a player and team can agree to defer. The CBA also includes a value-for-money calculation for luxury-tax purposes – a calculation that calculates the value of a player’s contract. from season to season. That’s how the $46 million is calculated.
For 10 years he will play for the Dodgers, so, Ohtani’s contract can be considered to be $46 million on average every year. But throughout the 20-year term of the deal — including the 10 years after the deferred payment, a period that Ohtani is no longer under contract with the team — is he should get $ 700 million.
The payments will span two 10 years, meaning Ohtani will earn $2 million annually from 2024 to 2033, then $68 million annually from 2034 to 2043.
The Dodgers remain in the mix at the top of the market, especially for pitching, with Japanese right-hander Yoshinobu Yamamoto and Tampa Bay Rays right-hander Tyler Glasnow among their targets. .
Ohtani’s contract was more than the $426.5 million his former Angels teammate, Mike Trout, received in the previous record. Ohtani’s agent at the Creative Artists Agency, Nez Balelo, revealed the delay after Ohtani’s decision to join the Dodgers was announced.
“He is happy to start this partnership, and he structured his contract to reflect a true commitment from both parties for long-term success,” Balelo said in a statement at the time.
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(Photo of Shohei Ohtani: Tim Nwachukwu/Getty Images)