As we all know, Shohei Ohtani is now a Los Angeles Dodger, the two-way superstar from Japan who signed a 10-year, $700 million dollar deal. The interesting thing about Ohtani’s deal is how they structured the deferred payments. Ohtani will be deferring $68 million of his $70 million average salary, which means he will only receive $2 million per year ($20 million in total) during the duration of his contract. Starting in 2034 and going through 2043, Ohtani will receive $68 million per year from the Dodgers, which gives the Dodgers the financial flexibility to build this team and load the roster with talent in hopes of winning multiple World Series championships. Deferred payments are not unusual. You have Bobby Bonilla, a former All-Star who last played for the New York Mets in 2001, and has received $1.19 million every July 1st since 2001. His payments will continue until 2035. He is currently 60 years old and will be 72 when he receives his final payment. “The Kid” Ken Griffey Jr. signed a nine-year deal worth $112.5 million with the Cincinnati Reds back in 2000 and set his contract up to get deferred payments of $3.59 million from 2009 to 2024. Ohtani and the Dodgers are set up to be successful for a long time, and you have to give Ohtani credit for being selfless and seriously dedicated to winning. The Dodgers have to win a World Series within the next two years, or Dave Roberts could find himself on the hot seat.
The $700 Million Dollar Man
