Shohei Ohtani's Contract Decision: Insights and Influences
Shohei Ohtani, the newly signed member of the Los Angeles Dodgers, elected to have historic contract deferrals in order to help the team sign better players and create a stronger team. By deferring 97 percent of his salary, Ohtani's annual value for luxury-tax purposes is expected to be around $48 million. This move allows the Dodgers to have more spending flexibility and avoid significant competitive balance tax penalties. Ohtani's endorsement contracts may offset much of his deferred salary, making him a unique player with a contract structured in a special manner.