Ohtani Defers 97% of His Pay for 10 Years

[Tanko]

He will receive $2M/yr for 10 years and defer the rest ($68M/yr) and be paid the balance between 2034 and 2044.
He apparently makes enough outside of baseball to not need the money and this opens up salary cap space for the Dodgers.

Of the $70M/yr in the original contract $44M/yr will count towards the cap.

Sources: Ohtani to defer $680M in Dodgers deal

Shohei Ohtani's 10-year contract with the Dodgers, the signing of which was announced Monday, will see him defer $68 million of his annual $70 million salary, sources said.

www.espn.com

 

[KVB]

I knew he was deferring a lot of pay but I didn't realize it was that much.

Wow

 

[Tanko]

The article mentions he makes about $45M/yr in endorsements. He doesn't need the $68M.

 

[JDS]

Damn he’s gonna be a multi Billionaire One day.

 

[KVB]

Crazy numbers.

I don't even think he will be pitching next year.

He's one expensive designated hitter, at least for next year.

 

[Archie]

smart move by doyers.

he will die of Vax before most is due

 

[JDS]

smart move by doyers.

he will die of Vax before most is due

When the Vax kills him will the Doyers have to pay his next of kin or the contract dies with him ?

 

[Tanko]

When the Vax kills him will the Doyers have to pay his next of kin or the contract dies with him ?

Dodgers have to set aside $44M in an escrow account each year, which is equivalent to the salary cap hit. I'm assuming his contract is guaranteed and at least the money set aside for the cap, if not the full $68M per year, goes to the estate (I'm guessing).

Hell, you'd never defer money if they didn't guarantee the payout later.

 

[jjgold]

He is smart
He does not need the money anyway