NEW: Shohei Ohtani and LA Dodgers’ Record-Breaking $700 Million Deal

The Los Angeles Dodgers’ signing of Japanese baseball star Shohei Ohtani to a 10-year, $700 million contract involves sophisticated financial engineering. He has opted to defer $680 million of his deal until after his playing days, receiving just $2 million in salary per year over the 10-year playing life of the contract.

Ohtani and LA Dodgers

This structure benefits both sides, allowing the Dodgers to have additional payroll space to pursue more championships and stars. At the same time, the player can reduce his overall tax burden over the lifetime of the deal. The Dodgers currently owe $857 million in deferred salary and bonuses to three-star players, including Ohtani.

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