MLB Superstar Shohei Ohtani Signs Record-Setting Contract with Los Angeles Dodgers
Los Angeles, CA – In a groundbreaking deal, Major League Baseball (MLB) superstar Shohei Ohtani has signed a record-setting contract with the Los Angeles Dodgers. The contract, worth a staggering $700 million, sets a new precedent in the baseball world. What makes this deal even more remarkable is that Ohtani will be deferring more than 97% of the total amount until after the 10-year term of the agreement.
Under the terms of the contract, Ohtani will defer $68 million of his $70 million salary each year, with the remaining $680 million to be paid starting in 2033. This decision, according to Ohtani himself, reflects his desire to prioritize winning and being a team player.
Upon the announcement, Dodgers chairman expressed his congratulations to Ohtani and referred to the deal as a “historic contract.” He also commended Ohtani’s incredible talent and level of excitement he brings to the team.
Deferring salaries in large contracts is not entirely unheard of in the league. Pitcher Max Scherzer, for example, deferred $105 million in his 2015 deal. By deferring a significant portion of Ohtani’s payment, the Dodgers will have more financial flexibility to pursue other top players, potentially including Yoshinobu Yamamoto.
Not only does this deal benefit the Dodgers from a financial standpoint, but it also allows them to avoid contributing Ohtani’s full salary towards the luxury tax threshold. The Dodgers will have a stronger financial position to bolster their team while avoiding the luxury tax repercussions.
The mega-contract has sparked a spirited debate among fans. While some applaud the Dodgers for securing a player of Ohtani’s caliber, others criticize the deal as “stupid” and a “joke.”
MLB has confirmed that they will not challenge or cancel Ohtani’s contract, as deferred money falls within the limits outlined in the collective-bargaining agreement. This means that the Dodgers and Ohtani are within their rights to proceed with the agreement.
It’s important to note that Ohtani will still receive compensation from his endorsement deals. These include partnerships with New Balance, Fanatics, Topps, and various sponsors in Japan, further adding to his massive earning potential.
In response to Ohtani’s departure, the Los Angeles Angels, Ohtani’s former team, thanked him for his contributions and wished him well in his future endeavors.
This groundbreaking contract has captivated the baseball world, pushing the boundaries of what is possible in player agreements. As Ohtani dawns the Dodger blue, fans will eagerly anticipate his performances on the field while wondering how this record-setting deal will shape the future of the game.
