Los Angeles Dodgers Will Get Shohei Ohtani For A Paltry $2 Million A Year Thanks To Some Incredible Financial Finessing
Shohei Ohtani landed a 10-year, $700 million contract with the Los Angeles Dodgers. But he won’t receive the vast majority of it until the end of his contract.
According to Fabian Ardaya of the Athletic, the Dodgers will pay Ohtani a lot of money in deferred payments. This was to be expected, you can’t pay a guy $70 million a year and expect to be competitive. Even with the Dodgers’ payroll, that would make their luxury tax reach enormous heights.
But the crazy part is how much of the money will be deferred. In case you were wondering, it’s a ridiculous amount.
According to Ardaya, Ohtani will only make $2 million a year while he plays for the Dodgers. That means a mind-boggling $680 million will be deferred until he’s done, which will be payed off without interest from 2034-2043. That means for a full decade after this contract, Ohtani will earn $68 million a year.
This makes Bobby Bonilla’s deferred payments seem like peanuts in comparison.
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This whole thing feels incredibly illegal. That means that when I’m 43 and I have a kid or two in high school, the Dodgers will pump $68 million in Ohtani’s bank account - even though he (potentially) hasn’t stepped on a baseball diamond in 10 years.
Gosh, I chose to go into the wrong field.
According to Ardaya’s report, Ohtani actually suggested the idea toward the end of his negotiations with the Dodgers. The superstar wanted to make sure the Dodgers stayed competitive during his tenure, which is equal parts smart and selfless.
However, one fan pointed out that $2 million a year in Los Angeles might not be enough for Ohtani to live off of.
However, Ohtani will be just fine. He makes roughly $50 million off the diamond in sponsorship deals. So maybe it wasn’t as selfless a move as I thought.
But on a serious note, let’s go back to both the ridiculous juxtaposition of what Ohtani makes now and what he will make later.
Numbers Behind Ohtani Contract Will Take Time To Process
Here’s a brief list of players who will make more money next year than the game's best two-way star since Babe Ruth.
The Dodgers hope that signing Ohtani can lift them to postseason success. (Photo by Thearon W. Henderson/Getty Images)
If you knew who any of these guys were before I named them, you’re either a true fan of one of these teams - or a liar. And yet, they’ll be getting more money in the short run than the undisputed best player on the planet.
By contrast, Ohtani’s payments in the future dwarf the payrolls of entire teams. Right now, the Marlins, Brewers, Reds, Pirates, Orioles, and Athletics all have smaller payroll’s than just one of Ohtani's deferred payments.
For the Dodgers' sake, this deal better pay incredible dividends I can just imagine what Dodgers executives could be saying about that deal in the future if it doesn't.
“Hey man! I was just thinking, do remember when we signed Ohtani for all that money?”
“Sure do, I remember it like it was yesterday. We got him, and the MLB went crazy. We hoped he’d lead us to the World Series.”
“And he did! We won it all in 2028 in one of the best World Series ever played!”
“Yeah, but all those early playoff to low-payroll teams really stunk. Blast those pesky Diamondbacks (again), Pirates, and Reds.”
“Hey, at least it was worth the risk. He’s one of the best players to ever grace the diamond. And who knew that Ohtani couldn’t break our tendency to crash and burn out the playoffs in the first round?”
“Yeah, I suppose you're right.”
“So, do you want to write that massive check to a guy we haven’t seen in 10 years? Or do you want to go watch our fourth-place team struggle against us because we can't sign a big-name star? Up to you!”
In all seriousness, I do hope that’s not how it goes for the Dodgers or Ohtani. But only time will tell if the biggest sports contract was worth paying - even if those payments are significantly delayed.