Dodgers will delay signing $680 million player Shohei Ohtani, according to sources.
Ohtani's historic 10-year, $700 million contract with the Dodgers includes a remarkable deferral of $68 million from his annual $70 million salary.
The Dodgers officially announced the signing, making it the richest deal in the history of North American professional sports.
– Ohtani is deferring over 97% of his earnings, with $680 million to be paid between 2034 and 2043, aiming to ease the team's payroll and support signing other players.
– The idea for deferrals originated from Ohtani himself, driven by a desire to help the team and facilitated by his significant off-field earnings, estimated at over $45 million annually through endorsements.
– Ohtani expressed gratitude to Dodger fans and shared a common goal with the organization: to bring World Series championships to Los Angeles.
– The cost of Ohtani's contract towards the Dodgers' competitive balance tax payroll is approximately $46 million per season, contributing to a combined annual cost of around $100 million when factoring in Freeman and Betts.
– The luxury tax threshold for 2024 is $237 million, and there is no limit on the amount of money that can be deferred, but teams must set aside the present-day value of deferred money in an escrow account.
– The Dodgers made roster moves to accommodate Ohtani, acquiring relief pitcher Joe Kelly and shortstop prospect Trey Sweeney in a trade with the New York Yankees, while sending Victor Gonzalez and Jorbit Vivas.