Shohei Ohtani agreed to a 10-year, $700 million deal with the Los Angeles Dodgers on Saturday, and it’s believed to be one of the largest contracts in sports history, running through the 2033 season.
The nitty-gritty details of Ohtani’s astronomical contract were revealed on Monday, and it reportedly saves the Dodgers hundreds of thousands of dollars and helps them stay competitive in free agency.
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Ohtani, 29, was set to make $70 million per year, agreed to defer all but $2 million annually until his contract ends, The Athletic reported. The deferred money — $68 million annually — will reportedly be paid without interest from 2034 to 2043.
The unprecedented deferral money will lower the amount it costs toward the Dodgers’ luxury tax payroll, the Associated Press reported over the weekend.
"He structured his contract to reflect a true commitment from both sides to long-term success," Ohtani’s agent Nez Balelo said in a statement. "Shohei and I want to thank all the organizations that reached out to us for their interest and respect, especially the wonderful people we got to know even better as this process unfolded."
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Ohtani made the announcement he would sign with the Dodgers on his Instagram.
"I apologize for taking so long to come to a decision," he wrote in the caption of a photo of the Dodgers’ logo. "I would like to express my sincere gratitude to everyone involved with the Angels organization and the fans who have supported me over the past six years, as well as to everyone involved with each team that was part of this negotiation process.
"And to all Dodgers fans, I pledge to always do what’s best for the team and always continue to give it my all to be the best version of myself. Until the last day of my playing career, I want to continue to strive forward not only for the Dodgers but for the baseball world."
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Ohtani will join a lineup that already includes Mookie Betts and Freddie Freeman. Ohtani will likely remain as a DH until he’s able to pitch, which won’t likely happen until 2025.
The Associated Press contributed to this report.
