After a slow start, the MLB offseason has picked up the pace with some eye-catching deals. To begin with, the $700 million Shohei Ohtani deal with the Los Angeles Dodgers has stormed the entire sporting circle by making the Japanese star the highest-earning athlete on American soil. Contrary to expectations, the most recent reports present a different scenario.

Notably, Ohtani topped the leader box of highest-paid athletes over global football icon Lionel Messi with $70 million a season. But the latest reports suggest that this was a presumption only. Reportedly, the 2023 MVP is expected to earn way less, with some claiming it to be $2 million a year. Given it is multifold less than the projected earnings, it looks unreal. But if it is true, what is the reason behind such numbers?

Shohei Ohtani to Earn Only $20 Million in All His 10-Year Contract

Notably, the 30-year-old has chosen the path of deferments to fulfill his deal. Due to this, Ohtani will earn two million dollars a year until the end of 2033, amounting to $20 million in 10 seasons. It will leave him with $680 million in salaries, which the Dodgers will pay for till 2043, making this a contract of two decades inked as one.

Fascinating indeed! Yet, with this arrangement, there’s a significant message for everyone involved. The question remains: will other teams take heed?

Will Other Teams Follow Suit After Seeing the Benefits of the Deferments?

Shohei Ohtani deal was a center of attraction for all due to the money involved. Notably, the deferments involved in the deal have changed the nature from a costly to an economical setup. According to Bob Nightingale, the setup will benefit, both the Dodgers and Shohei Ohtani.

He shared, “Shohei Ohtani’s decision to earn just $2 million a year certainly is a great benefit to the Dodgers’ payroll, but also a stroke of genius for tax repercussions. If he’s not living in California once his deferred payments start, he will not be subjected to heavy California tax.”

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Will they realize it and implement the same strategy in the future? Will MLB allow this? Let us know your thoughts in the comments.