After the completion of the biggest MLB deal, there seems to be no end to the media attention surrounding Shohei Ohtani. There is a lot of scrutiny on the star player for many answers regarding his contract value. It seems the same will increase due to big revelations regarding deferments in his salary, which are expected to be around $680 million.
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Given that Ohtani’s contract is worth $700 million, deferments leave him with $2 million annually. It raises many questions about the legality of the move, and with many rules and regulations in place, many expect Ohtani to face the consequences. But it seems that is unlikely to happen. Why so?
Shohei Ohtani to Earn $2 Million a Year With Deferments in Place
Shohei Ohtani shocked the entire baseball world with his big-money move to stay in Los Angeles. The 2023 AL MVP ditched all to sign a $700 million, 10-year contract with the Los Angeles Dodgers, becoming the athlete with the highest contract in American sports history. But it seems he will not be the big earner until the end of his contract, all thanks deferments included in his contract.
Shohei Ohtani's $700 million contract calls for him to be paid only $2 million a year for the next 10 seasons, with $680 million deferred until the end of the deal, sources confirm to ESPN.
The CBT hit on the contract is going to be around $46 million, a huge discount for L.A.
— Jeff Passan (@JeffPassan) December 11, 2023
According to renowned Jeff Passan, Ohtani will earn $2 million per season for the next ten seasons. He further shared, “The CBT hit on the contract is going to be around $46 million, a huge discount for L.A.” When seen as a whole, the deal is interesting. Even after a high cost, it will benefit Ohtani and the Dodgers. This brings a valid question: Is MLB looking at it thoroughly? If so can they do anything against this deal?
Will MLB Penalize the Dodgers and Ohtani for a Deal With Hefty Deferments?
Every deal in the professional spectrum amounts needs to pass certain rules. When it is determined to be unfavorable for them, appropriate action is implemented. The same question has been put against Shohei Ohtani’s deal, which is becoming more intriguing. First, it happened with rumors of a plan to force the Dodgers to spend more. Now, the deferments have changed the entire landscape of the deal. Thus, all eyes are on MLB to see what they are doing in this case.
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Yet, there isn’t a great deal that the league can undertake in this situation. According to Passan, there is no rule that this deal has violated. He shared, “For anyone wondering if MLB will challenge or cancel Ohtani’s contract: The answer is unequivocally no. There is a specific article in the collective bargaining agreement that addresses this. And it’s very clear: Deferred money is limitless — even $680 million of $700 million.”
For anyone wondering if MLB will challenge or cancel Ohtani's contract: The answer is unequivocally no. There is a specific article in the collective-bargaining agreement that addresses this. And it's very clear: Deferred money is limitless — even $680 million of $700 million. pic.twitter.com/DGNK0JulED
— Jeff Passan (@JeffPassan) December 11, 2023
This means parties can defer salaries to any extent without any scrutiny and repercussions. It also points to the flaw that other teams can utilize for their sake. Will others do the same in the coming future? Let us know in the comments.
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Edited by
Deepanshi Bajaj