Shohei Ohtani's Unprecedented Contract Deferral Stuns Baseball World

Shohei Ohtani has reportedly agreed to a 10-year, $700 million deal with the Los Angeles Dodgers, with the majority of his salary being deferred until the end of the contract in 2034. The deferred $680 million will be paid without interest from 2034 to 2043. Ohtani's suggestion to defer the money aims to help the Dodgers with future spending efforts and navigate the competitive balance tax. The MLB cannot challenge or cancel the contract due to the absence of limitations on deferred compensation in the collective-bargaining agreement. The deferrals also benefit Ohtani from a taxpayer's perspective, as he may avoid heavy state taxes if he is not living in California when the payments begin.