Shohei Ohtani explains why he chose to defer majority of $700M contract

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Shohei Ohtani signed a $700 million deal with the Los Angeles Dodgers, shattering the previous MLB record set by former teammate Mike Trout, who inked a $426 million deal in 2019.

That was jaw-dropping enough. 

Then, news dropped Ohtani would defer $680 million of that until 2034.

Despite the annual average value of Ohtani's deal being $70 million, he will be making just $2 million per year the next 10 years, then $68 million annually from 2034 to 2043.

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Shohei Ohtani poses for a photo with manager Dave Roberts after being introduced by the Los Angeles Dodgers at Dodger Stadium Dec. 14, 2023, in Los Angeles.  (Meg Oliphant/Getty Images)

Ohtani's compensation will still register as a $46 million cap hit because of the calculations of the deferrals by Major League Baseball.

The 29-year-old was officially introduced as a member of the Dodgers Thursday at Dodger Stadium, and he explained why he decided to defer over 97% of the money until after the contract ends.

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"I was looking into it, doing some calculations, and I figured if I can defer as much money as I can, that’s gonna help the (collective bargaining tax). That’s gonna help the Dodgers and be able to sign better players and make a better team," he said. "I felt like that was worth it, and I was willing to go in that direction. That’s why I made that choice."

Ohtani joins Bobby Bonilla, Ken Griffey Jr., Chris Davis and Max Scherzer as players with unusual deferred deals.

San Francisco Giants president of baseball operations