How Are Shohei Ohtani’s Historic Deferrals Affecting The Dodgers’ Spending?

The Los Angeles Dodgers shocked the baseball world when the organization signed Shohei Ohtani to a 10-year, $700 million deal last December. Arguably the most surprising detail of the blockbuster deal was Ohtani deferring 97 percent of his contract.

Ohtani’s deferred payments gave the Dodgers financial flexibility to continue bringing talent to Los Angeles, hence the recent signing of free agent pitcher Blake Snell and the contract extension to keep utility man Tommy Edman.

Bob Nightengale of USA Today broke down how Ohtani’s deferred salary was only possible because of his stardom in an exclusive conversation with Dodgers Nation.

“Yeah, well, they’re making their money and they’re spending it,” Nightengale told Dodgers Nation’s Doug McKain. “A lot of people don’t. You know, think about back in the days of George Steinbrenner — he was about the only guy who spent every penny and could care less about turning a profit. And I think even John Middleton of the Phillies had the great quote a year ago talking about the 1927 Yankees. Does anyone remember if they turned a profit or not? We know the Dodgers are going to turn a profit.

“The Ohtani thing, you know, was unbelievable. I’m still amazed that the Angels didn’t match that deal. But, you know, with a $2 million salary and $68 million deferred every year, it costs the Dodgers about $43 million a year, really. And they’re making more than that, not just on ticket sales, but on promotions, sponsorships, and tours coming in from Japan. So, I mean, he’s one guy. Aaron Judge sells some tickets, Soto sells, you know, but nobody sells tickets like Ohtani. That’s how Ohtani makes about $65 million a year off the field, but the next closest thing is about $6 or $8 million a year. No one has ever meant this much to baseball in terms of sponsorships and stuff. Maybe it’s like Babe Ruth.”

Ohtani knew he’d be able to make his money in other ways, and the Dodgers knew they’d be able to maximize their championship window by continuing to add talent around the greatest talent arguably in baseball history.