Shohei Ohtani Will Only Get Paid $2M Per Year
The New Dodgers Star Is Deferring $680 Million of His Contract to 2034
Smart Move From Ohtani & the Dodgers
The 10-year, $700 million contract the Los Angeles Dodgers gave Shohei Ohtani may be the biggest in MLB history but he’s not actually going to see that money for a while. In fact, he’s going to have to wait until his contract is over to see the bulk of the money.
The Dodgers and Ohtani have agreed to defer $680 million of the contract to 2034, according to MLB rumors. Starting in 2034, the Dodgers will pay the star two-way player $68 million a year for a decade. So why would Shohei Ohtani trade $68 million a year for $2 million a year?
That’s a complex question. The most obvious answer is taxes. Ohtani could save around $90 million in taxes if he lives outside of California when the Dodgers start paying him real money. California has some of the highest income taxes in the country so if Ohtani moves to somewhere like Florida, his tax bill would be significantly smaller.
Ohtani to California after Cali realizes they won’t be able to tax 680 million dollars. pic.twitter.com/fpxqAflphK
— Chris Bassitt (@C_Bass419) December 11, 2023
Ohtani’s Financial Impact on Dodgers
Also, deferring this money gives the Dodgers some short-term flexibility to stack the team with more talent. MLB news has linked Los Angeles to Japanese pitcher Yoshinobu Yamamoto and they now have enough money to pay him if they want. It’s also not just for this year.
The Dodgers can be flexible with their money for years to come with Ohtani not being a problem for the next decade. However, Ohtani hasn’t really seen that much money from MLB salaries since joining the league.
This is his first big payday so why wait to get all that money? Ohtani is set to make a ridiculous amount of money from endorsements. He was already baseball’s biggest star and now he joins one of the most popular teams in the league.
His face is going to be everywhere this year. He’ll make $50 million from endorsements this year so he’s not going to be hurting for money. These are Ohtani stats that nobody is going to touch as Bryce Harper and Aaron Judge only make around $5 million to $6 million in endorsements every year.
Shohei Ohtani earns approximately $50M annually in endorsements. Assuming that figure holds (it’ll actually more likely increase), he’ll be worth at least $1.2 billion by the time he receives his last contract payment.
The Marlins, Athletics, Royals and Reds are all valued less.
— Dan Clark (@DanClarkSports) December 12, 2023
The Dodgers do have to pay this money eventually but for now, they can focus on winning World Series titles.
Author: Sin City Sniper
Author: Sin City SniperBusting bookmakers and taking their money is his greatest joy in life. He’s been around the block more than once, knows the players both on and off the field of battle, and uses his experience to serve the bookies a heaping plate of humble pie washed down by a warm glass of their salty tears. You can find him in any number of Vegas books, sniping weak lines and getting paid to do it.
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