Shohei Ohtani’s Monumental $700 Million Contract With a ‘Deferral’ Twist Reaffirms ‘Winning’ as His Ultimate Priority

Published 12/10/2023, 10:33 PM EST

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The Los Angeles Dodgers and Shohei Ohtani deal is done. A gargantuan $700 million contract is what he inked. However, there are more intricacies to this deal than what appears at its face value. To one’s shock, these details would show how “it lowers the present-day value of the deal by a significant margin.

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Well, as one breaks down the contract, it becomes clearer that the celebration and noise around the number ‘700’ might have been overdone. Despite that, the underlying intention behind the truth that the “’majority’ of Ohtani’s contract is deferred”, is undoubtedly, winning! It’s time to dive into the details.

A Break Down of Shohei Ohtani’s Historic Deal

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ESPN columnist Jeff Passan elaborate tweet on what the contract meant was an eye-opener for those struck by the starry figures. The tweet read, “..Shohei Ohtani’s $700 million contract with the Los Angeles Dodgers will not equal $700 million in terms of MLB accounting or the present-day value of the deal.” That said, one question arises. Taking money out of the picture what is Otani’s intent? 

Before answering that question, its important to simplify, the meaning of a deferral. The deferral of payments lessens the current value of the contract which consequently lessens the impact on the Competitive Balance Tax (CBT). Reason? The value of $1 today is higher than its value in the future. With that, it becomes clever that “(The deferrals are) primarily about allowing the team to be successful on the field, because above all else he (Ohtani) wants to win,” as reported by a source to MLB.com. 

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Though the exact terms of the deferrals remain unknown, it is clear that the two way phenom is focused on nothing but victory. As his career goal today, is different from that during his first free agency. With that, it was rather evident that ‘winning’ tops his checklist. This is a great call back to what happened back in 2017. 

History gives a peek into how the 2x unanimous MVP functions

Ohtani’s choice to eliminate the financial criteria from the consideration is not new. In an attempt to further his professional aspirations, he made a decision back when the NPB team, the Nippon Ham Fighters, posted the now-unicorn. Even though his choice had a clear business component, he didn’t seem pushed by it. What mattered to him was finding a team with whom he clicked and a place where he could develop his strengths. Hence, he chose the Los Angeles Angels.

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Clearly, Ohtani does not worry much about earning money. With that is evident that though his career goals have evolved, his opinion about money remains unaltered. 

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Written by:

Kanishka Prakash

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"Our identity is forged through consistent actions. True excellence is not a singular act; rather, it is ingrained in our daily habits." Since I was a teen, I learned that the best way I could express myself was by writing.
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Edited by:

Deepanshi Bajaj

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