Shohei Ohtani, 29, has been praised for his “consideration for the club” after agreeing to a 10-year, $700 million (approx. KRW 92 billion) mega free agent contract with the Los Angeles Dodgers of Major League Baseball, the highest in sports history.”A historic player, Ohtani signed a contract that will go down in sports history, while being considerate of the long-term success of the Dodgers,” Ohtani’s agency, CAA, said in a statement on Tuesday.MLB.com, The Athletic, and other local media outlets reported that “Ohtani’s contract is for 10 years and is worth $700 million, but his average salary over the course of the contract will be well under $70 million,” and that “Ohtani has offered an ‘unprecedented salary deferral’ in which he will first receive the majority of his salary after the end of the contract.””It appears that Ohtani was trying to help the Dodgers avoid the burden of the competitive balance tax and allow them to add to their roster.”The Major League Baseball competitive balance tax threshold for 2023 is $233 million. The Dodgers spent $267.2 million this year on salaries, contract installments, and more to pay the competitive balance tax.If Ohtani, who is under contract with the Dodgers from 2024 through 2033, earns $70 million per year in salary (including installment payments), the Dodgers would be hesitant to sign a big free agent for all 10 years of his contract.
If Ohtani receives a significant portion of his salary after the end of his contract, as reported by the American media, the Dodgers will be able to avoid the competitive balance tax and add more power.Ohtani, who broke into the majors in 2018 but has yet to reach the postseason, offered an “unprecedented salary deferral” to show his desire to win the World Series.Salary deferrals are a common “settlement clause” in recent major league multi-year contracts.Freddie Freeman, who signed a six-year, $162 million contract with the Dodgers in March 2022, will receive only $150 million in the first year of his contract, with the remaining $57 million spread out over 13 years.”The specific terms of the contract have not yet been disclosed by the club and Ohtani, but the team has agreed to unprecedented terms that will see Ohtani receive a huge amount of money ‘behind the scenes,'” local U.S. media emphasized.While the major concession reduces his salary from the club over the course of his 10 years with the Dodgers, Ohtani’s actual earnings are expected to average well over $70 million per year.According to CBS Sports, “Ohtani’s base salary with the Los Angeles Angels for the 2023 season is $30 million. However, Ohtani has an endorsement deal worth about $40 million, making more than his salary.” “With the Dodgers, who are more popular than the Angels, Ohtani could make more 스포츠토토존 than $100 million annually through salary and endorsements.”