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Shohei Ohtani’s record 10-year, $700 million deal includes an unprecedented series of extensions, a person briefed on the terms told The Athletic on Monday.
In an effort to allow the 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 after the 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 every year from the diamond, the person who explained on the terms told the Athletic.
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 expected annual value on the contract is said to be close to $46 million per year, the person briefed on the terms said. ugh. The Dodgers remain in the mix at the top of the market, especially for pitching, with Japanese right-hander Yoshinobu Yamamoto and 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.
(Photo of Shohei Ohtani: Tim Nwachukwu/Getty Images))