As you know by now, Shohei Ohtani's contract is special. 97% of his $700 million will be paid to him after the 10 years of his contract.
Result? He will earn two million dollars per year from 2024 to 2033, then $68 million per season from 2034 to 2043. Unique, you say?
The net present value of the contract is $460 million. After all, for 10 years, the money will be in the pockets of the Dodgers, who will earn interest on the amount.
He is not the first MLB player to sign such a contract, but his case is obviously egregious. In fact, on the Dodgers, three players are in that boat.
| Shohei Ohtani | Mookie Betts | Freddie Freeman | Total | |
| 2028 | $4 million | $4 million | ||
| 2029 | $4 million | $4 million | ||
| 2030 | $4 million | $4 million | ||
| 2031 | $4 million | $4 million | ||
| 2032 | $4 million | $4 million | ||
| 2033 | $10 million | $4 million | $14 million | |
| 2034 | $68 million | $10 million | $4 million | $82 million |
| 2035 | $68 million | $9 million | $4 million | $81 million |
| 2036 | $68 million | $8 million | $5 million | $81 million |
| 2037 | $68 million | $8 million | $5 million | $81 million |
| 2038 | $68 million | $10 million | $5 million | $83 million |
| 2039 | $68 million | $10 million | $5 million | $83 million |
| 2040 | $68 million | $11 million | $5 million | $84 million |
| 2041 | $68 million | $11 million | $79 million | |
| 2042 | $68 million | $11 million | $79 million | |
| 2043 | $68 million | $11 million | $79 million | |
| 2044 | $11 million | $11 million | ||
| Total | $680 million | $120 million | $57 million | $857 million |
Besides Ohtani, the case of Mookie Betts and that of Freddie Freeman is striking. After all, the guys also have deferred money that needs to be accounted for.
In 2040, a very long time from now, the Dodgers will have to pay no less than $84 million to the three guys, who will be between 45 and 50 years old.
Want something crazy?
In 2023, no fewer than five teams had a payroll of less than $84 million. Cincinnati and Pittsburgh didn't have a bad team while the Rays and Orioles made the playoffs.
And there are the A's…
All this to say that the Dodgers are better off putting money aside quickly since big expenses await them in the future.
