Shohei Ohtani's wild endorsement payouts prove why he took all that deferred money
By Mark Powell
Dodgers star Shohei Ohtani increased his profile when he signed a record contract in Los Angeles. While Ohtani spent the beginning of his career in Anaheim, playing in LA with one of the most lucrative franchises in sports provides Shohei with more opportunities off the field.
Ohtani's contract is littered with differed money, meaning he will make the majority of his earnings after retirement. It's all legal, look no further than Bobby Bonilla and the New York Mets.
Shohei was smart, though, in the makeup of his deal. Post-retirement, Ohtani will have trouble keeping up the same standard of living from his playing days -- or at least he would have if his contract didn't include all that deferred income. In the meantime, Shohei is making the majority of his money from endorsements, as reported by Bob Nightengale of USA Today.
"Shohei Ohtani, who’s projected to earn $65 million in endorsements this season, just signed a long-term contract with Rapsodo to be their new technology ambassador," Nightengale wrote.
Shohei Ohtani's Dodgers contract makes so much sense for him
As FanSided's Josh Wilson wrote when Ohtani signed, his deferred deal does have some consequences:
"Shohei Ohtani's very unique $700 million contract that will be paid out over the course of 20 years has the baseball world reeling over what it means for the Los Angeles Dodgers' ability to build around Ohtani. There's also significant speculation and discussion about the tax consequences for Ohtani himself that, with key personal facts and circumstances unknown or yet to develop, are impossible to answer with certainty at this time, and could very well make for an interesting tax court case in just over a decade," Wilson wrote.
Ohtani will take a $206 million decrease in overall funds by deferring his money for the future. However, his endorsements all but make up for that, as he's set to make over $70 million per season. That number could also increase with time.
Ohtani can afford to take the hit present day because his off-field capital makes up the difference. For Shohei, having some form of guaranteed income in the decade after his playing career is worth forfeiting some of the income he would have earned without the deferrals.