Ohtani's Dodgers contract has $680 million deferred, lowering tax value to $46 million annually

Los Angeles Angels starting pitcher Shohei Ohtani throws during a baseball game against the Los Angeles Dodgers in Anaheim, Calif., June 21, 2023. Ohtani agreed Saturday, Dec. 9, to a record $700 million, 10-year contract with the Dodgers. (AP Photo/Ashley Landis, File)

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By Associated Press

December 11, 2023 at 11:53 PM UTC

Updated on

December 12, 2023 at 7:37 PM UTC

NEW YORK (AP) — Shohei Ohtani will receive just $20 million of his $700 million contract with the Los Angeles Dodgers over the next 10 years, with $680 million payable from 2034-43 in an unusual structure that gives the team greater payroll flexibility in coming seasons.

Ohtani's record-setting deal, agreed to Saturday, calls for annual salaries of $70 million, according to details obtained by The Associated Press. Of each year's salary, $68 million is deferred with no interest, payable in equal installments each July 1 from 2034-43.