(Photo by Steph Chambers/Getty Images)
The Los Angeles Dodgers signed Shohei Ohtani, MLB’s best and most complete player, to a 10-year, $700 million contract.
The structure of the deal is somewhat odd, though.
Ohtani will earn $2 million per year for the next 10 seasons, the duration of his contract.
However, from 2034 to 2043, he will be paid $68 million per year.
This way, the Dodgers have more flexibility to work with and sign more talented players, and they worry about paying Ohtani later when inflation has somewhat lowered the impact of those $68 million per season.
Don’t worry about Ohtani: with all the money he makes on endorsement deals, he will make much, much more than $2 million per year.
Some fans have criticized the league for allowing this structure and Ohtani and his camp for encouraging it.
However, it’s not against the rules, as MLB insider Jeff Passan explains.
“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,” Passan tweeted.
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
He attached a screenshot of the CBA that states “there shall be no limitations on either the amount of deferred compensation or the percentage of total compensation attributable to deferred compensation for which a Uniform Player’s Contract may provide.”
Discussion over.
It might seem insane to some fans, but any MLB organization can do this, not just the Dodgers.
Now, LA has Ohtani, Mookie Betts, Freddie Freeman, Max Muncy, Jason Heyward, Will Smith, Chris Taylor, and other talented hitters in a truly majestic lineup.
The post MLB Insider Shuts Down 1 Shohei Ohtani Financial Narrative appeared first on The Cold Wire.
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