The Uniqueness of Shohei Ohtani's Deferred Dodgers Deal
Shohei Ohtani's unprecedented 10-year, $700 million contract with the Los Angeles Dodgers includes deferring $68 million of his $70 million average salary. The deferrals, totaling $680 million, will begin in 2034 and end in 2043. This structure allows the Dodgers more financial flexibility in the short term and helps them stay under the Competitive Balance Tax (CBT) threshold. Ohtani's decision to defer the money was driven by his understanding of the implications and desire to support the team's ability to build a winning roster. This level of deferral is unprecedented in baseball contracts.