Captain buzzkill: Could state government intervene in Shohei Ohtani contract?

Shohei Ohtani signed the largest contract in North American sports history when he joined the Los Angeles Dodgers. However, the deferrals in his contract have seemingly caused a public outcry, and not just among fans.
Los Angeles Dodgers Introduce Shohei Ohtani
Los Angeles Dodgers Introduce Shohei Ohtani / Meg Oliphant/GettyImages
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A month has passed since Shohei Ohtani signed a 10-year, $700 million deal with the Los Angeles Dodgers. The deal is the largest in North American sports history.

However, the deferrals in his contract have caused a public outcry among fans. He is only being paid $2 million per year with the remaining $680 million being deferred until after his contract has expired in 2033.

But it's not just the fans who have expressed discontent over Ohtani's deferrals. According to Bill Shaikin of the Los Angeles Times, California State controller Malia Cohen has also raised concerns about the deferrals, citing an imbalance in the California State tax structure.

"The current system allows for unlimited deferrals for those fortunate enough to be in the highest tax brackets, creating a significant imbalance in the tax structure," said Cohen. "The absence of reasonable caps on deferral for the wealthiest individuals exacerbates income inequality and hinders the fair distribution of taxes. I would urge Congress to take immediate and decisive action to rectify this imbalance."

State controller urges action on Shohei Ohtani deferrals

This is certainly unexpected. While fans have been frustrated about Ohtani choosing to defer his money, nobody expected it to come to this.

Because Ohtani has deferred so much money, the Dodgers have plenty of room to spend on other star free agents and strengthen their roster. Certain fans obviously believe it is unfair, but it's interesting that now, Cohen is calling for Congress to get involved.

If Congress ultimately does get involved in this issue, then it would make for one of the most interesting and compelling, yet odd stories in recent baseball history.

Could it affect how the Dodgers distribute Ohtani's money over the next 10 years? That ultimately seems unlikely, despite the concerns from the California state government.

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