Shohei Ohtani was officially introduced by the Dodgers in a press conference on Thursday afternoon, marking his arrival as a two-way superstar to the franchise following a lucrative 10-year, $700 million deal in free agency.
The unique structure of Ohtani’s contract involves deferring a significant portion, with $680 million deferred until after the deal expires, to be paid out from 2034 to ’43.
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Addressing the deferral during the introductory press conference, Ohtani shared his perspective, stating, “I was aware of the deferral structure, and usually when there’s a big contract in MLB, I’ve heard from the past that deferrals are involved, not all the time, but a lot of the time.”
He continued, “So, I was looking into it and doing some calculations, and I figured if I can defer as much money as I can, if that’s going to help the CBT and that’s going to help the Dodgers be able to sign better players and make a better team, I felt like that was worth it.”
By deferring a significant portion, Ohtani’s deal is expected to have a reduced impact on the competitive tax balance, estimated to be around $46 million rather than the full $70 million.
Ohtani expressed optimism that this financial flexibility will enable the Dodgers to strengthen the roster further and pursue other top free agents during the offseason.
In addition to the unprecedented deferrals, Ohtani’s contract includes a clause allowing him to opt out if president of baseball operations Andrew Friedman or controlling owner Mark Walter no longer hold their positions within the organization. Ohtani clarified that this provision serves as a “kind of a safety net,” ensuring alignment within the organization.
