Chelsea owner only plans to pay Shohei Ohtani $2m per year in $700m deal
Shohei Ohtanihas made a jaw-dropping move to the Los Angeles Dodgers in a deal worth $700million (£557m) but this landmark 10-year agreement is set to see him earn just $2m (£1.6m) a year for the next decade.
The Dodgers managed to secure the 29-year-old baseball superstar's services in the face of fierce competition from other franchises by securing the most lucrative agreement in sports history. The club's owners include Chelsea chairman Todd Boehly, who has gained a reputation for his free-spending during his short time in the Premier League.
During his 18 months in charge at Stamford Bridge, he has spent over £1bn with some of his 29 new signings having been brought in on lengthy deals. In a similar vein, this unique deal involving the Dodgers means Ohtani will have to wait until 2034 to receive the bulk of his salary - a whopping $680m (£542m).
This arrangement allows the Dodgers to reduce Ohtani's 'average annual value' from $70m (£56m) to $46m (£37m), while potentially freeing up funds to bring even more talent to their team in the future. Considering the value of his contract, this means that Ohtani, Freddie Freeman and Mookie Betts' deals will cost the Dodgers around $100m (£80m) per year.
READ MORE: Shohei Ohtani contract broken down as MLB star surpasses Lionel Messi and Cristiano Ronaldo
Chelsea complete record-breaking Enzo Fernandez transfer after deadline day rush
READ MORE: Todd Boehly mocked by Jurgen Klopp in brutal takedown after controversial proposal
This is a particularly significant detail, especially with the MLB's luxury tax threshold is set to be $237m (£189m) next year. Despite the controversy surrounding Ohtani's deal, there's nothing in the MLB rules that says the Dodgers not broken any rules in amortising the cost of his contract.
In fact, a clause in a collective bargaining agreement states that "there are no limitations on the amount of deferred compensation or the percentage of total compensation." Article XVI of the CBA means that MLB officials and the MLBPA can't contest the two-time AL MVP's blockbuster move.
According to ESPN, the deferrals in payment were actually Ohtani's idea and he's expected to earn $45m ($36m) from endorsements on top of his salary each year. Ohtani was also clearly thrilled to sign his historic deal, expressing his excitement ahead of his new chapter in the Dodgers' press release.
Shohei Ohtani was delighted to put pen to paper on a decade-long deal with the Dodgers (Kenta Harada/Getty Images)He said: "Dodger fans, thank you for welcoming me to your team. I can say 100 per cent that you, the Dodger organisation and I share the same goal; to bring World Series parades to the streets of Los Angeles."
Mark Walter, chairman of the Dodgers and Guggenheim Baseball Management, welcomed Shohei Ohtani to the team. He said: "On behalf of the L.A. Dodgers and our fans everywhere, we welcome Shohei Ohtani to the Dodgers, the home of Jackie Robinson, Sandy Koufax and Hideo Nomo, three of the sport's most legendary and pathbreaking players."
Walter continued: "Shohei is a once-in-a-generation talent and one of the most exciting professional athletes in the world. Our players, staff, management and ownership look forward to working together with Shohei to help the Dodgers continue to add, improve and strive for excellence on the field." He added: "Together with Shohei, we will work to help grow the number and breadth of people around the world who enjoy the excitement of Major League Baseball."
* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]
Read more similar news:
Comments:
comments powered by Disqus
