Shohei Ohtani deferring $1 billion in shocking Dodgers contract reveal

Shohei Ohtani’s blockbuster 10-year, $1 billion contract with the LA Dodgers contains even crazier details than previously realised.

Shohei Ohtani’s blockbuster 10-year, $1 billion contract with the Dodgers contains even crazier deferrals than previously realised. picture: Getty

Shohei Ohtani’s blockbuster 10-year, $1 billion (AUD) contract with the LA Dodgers contains even crazier deferrals than previously realised.

Ohtani will receive just $3 million per year during his decade-long contract, with $100 million each season getting deferred to be paid out between 2034 to 2043, The Post’s Jon Heyman confirmed.

Shohei Ohtani’s blockbuster 10-year, $1.078 billion contract with the Dodgers contains even crazier deferrals than previously realised. Picture: Getty Images

The Athletic first reported the Ohtani contract details and said Ohtani won’t exactly be scrapping for cash over the next decade because he makes around $77 million a year away from the field.

Ohtani was said to have proposed the structure of the deal himself, as it will heavily aid the Dodgers in supplying talent around the former Angel.

Until he suffered an elbow injury this year, Ohtani was the best combination of hitter and pitcher in Major League Baseball since at least Babe Ruth.

The new contract places Ohtani at number 17 of the top 20 Dodgers players ranked in order of expected salary in 2024.

Los Angeles Dodgers players, ranked in order of expected salary in 2024:

1) Betts
2) Freeman
3) Taylor
4) Muncy
5) Heyward
6) Smith
7) Buehler
8) Kelly
9) Rojas
10) Yarbrough
11) Barnes
12) Gonsolin
13) Phillips
14) Graterol
15) Ferguson
16) May
17) Ohtani

— Jeff Passan (@JeffPassan) December 12, 2023

But Ohtani’s deferral is raising eyebrows among financial experts.

One analyst explained Ohtani could be costing himself a sizeable sum in compound interest.

“Compound interest on 680M (AUD$1.0472 billion) invested evenly across 10 years would yield $1,101,908,079.42 (AUD$1.697 billion) by 2034,” he said.

“Can’t figure out what Ohtani gains from that structure,” he concluded.

Compound interest on 680M invested evenly across 10 years would yield $1,101,908,079.42 by 2034. And that’s at just 3% growth. That’s essentially 300M being saved by the Dodgers franchise. Can’t figure out what Ohtani gains from that structure. https://t.co/3hq61KzLKbpic.twitter.com/VwYrKfqBUc

— 𝐓𝐞𝐞 𝐅𝐢𝐞𝐥𝐝𝐬 (@EDCburner) December 11, 2023

Ohtani underwent elbow surgery in September.

He is expected to be available as a hitter next season, and hopes to return to the mound in 2025.

“The ultimate plan after deliberation with Shohei, was to repair the issue at hand and to reinforce the healthy ligament in place while adding viable tissue for the longevity of the elbow,” his surgeon Dr. Neal ElAttrache said in a statement at the time.

“I expect full recovery and he’ll be ready to hit without any restrictions come opening day of 2024 and do both [hit and pitch] come 2025.”

Ohtani will receive just $3.08 million per year during his decade-long contract, with $104.72 million each season getting deferred to be paid out between 2034 to 2043. Picture: Getty

Ohtani previously underwent Tommy John surgery in 2018.

At the plate last season, Ohtani hit .304 with 44 home runs, 95 RBIs and a 1.066 OPS in 497 at-bats.

He joins Mookie Betts and Freddie Freeman in a profoundly scary batting line-up.

The Dodgers are World Series favourites, a 5/1 chance to win the 2024 championship, according to the latest odds on FanDuel.

This article originally appeared on the New York Post and was reproduced with permission.

Originally published as Shohei Ohtani deferring $1 billion in shocking Dodgers contract reveal