The Los Angeles Dodgers will reportedly deferring $68 million of the $70 million annual salary of Shohei Ohtani's record-setting $700 million deal in an effort to allow the team to continue spending, a source briefed on the terms of the contract confirmed to the Athletic's Fabian Ardaya Monday (December 11).
"Exclusive @TheAthletic: Shohei Ohtani will defer $68 million per year of his $70 million annual salary over the course of his 10-year, $700 million deal with the Dodgers, allowing the team to keep spending, according to a person briefed on the terms," Ardaya wrote on his X account.
ESPN's Jeff Passan confirmed Ardaya's report and noted that Ohtani would only be paid $2 million annually for the next 10 seasons, "with $680 million deferred until the end of the deal," according to a source with knowledge of the terms.
"The CBT hit on the contract is going to be around $46 million, a huge discount for L.A.," Passan wrote on his X account.
Multiple sources claimed Ohtani proposed the structure and said he wished to defer his salary toward the end of negotiations as he believes his off-the-field earnings are significant enough, according to Passan.
Ohtani, who spent his first six MLB seasons with the Los Angeles Angels, announced his decision to sign with the Dodgers in a post shared on his Instagram account Saturday (December 9). The Japanese native is arguably the biggest star in baseball as one of the leagues best starting pitchers and hitters.
Ohtani led his country to a World Baseball Classic days before his second AL MVP season in which he hit for a .304 average with a league-best 44 home runs and 95 RBIs and recorded a 10-5 record with a 3.14 ERA and 167 strikeouts in 23 starts and 132.0 innings pitched.
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