Category: Finance | Title: How Much of Shohei Ohtani's Contract Is Guaranteed | Tag: MLB Contracts | Meta Description: Exact guaranteed money, structure, and protections in Shohei Ohtani's contract with the Dodgers...
Total Contract Value and Guarantee Overview
Shohei Ohtani signed a 10-year contract with the Los Angeles Dodgers in December 2023, with a total value of up to $700 million, making it one of the largest deals in sports history. The contract includes a fully guaranteed base salary for each season, with the Dodgers committing to pay the full amount regardless of performance, injury, or benching. This structure provides Ohtani with financial security that is rare in professional sports, especially for a player with a history of elbow injuries. The guarantee covers his on-field compensation and does not depend on postseason bonuses or All-Star selections. Details of the deal were reported by Forbes shortly after the signing.
The guaranteed portion of the contract is the base salary for each of the 10 seasons, which is structured to escalate over time. The first few years feature lower salaries that increase significantly in the later years, reflecting both Ohtani's rising star power and the Dodgers' long-term commitment. The contract also includes a no-trade clause, which is part of the overall guarantee structure, giving Ohtani control over where he plays for the duration of the deal. This level of protection is standard for generational talents but is notable given Ohtani's two-way player status and injury history.
Deferred Money and Payment Structure
A key feature of Ohtani's contract is the use of deferred payments, where a large portion of the salary is paid out years after the contract ends. The Dodgers deferred $680 million of the total value, with payments scheduled to begin in 2034 and continue for over two decades. This deferred structure allows the team to manage luxury tax and immediate cash flow while still delivering the full contract value to the player. The deferred money is fully guaranteed, meaning the Dodgers are contractually obligated to pay it regardless of future financial conditions. MLB.com explains the payment timeline and guarantees in its official breakdown.
The deferral mechanism is structured so that Ohtani receives his annual salary in cash each year, while the deferred portion is invested and paid out later. This means the player's present-day compensation is not reduced, and the guarantee applies to both the current salary and the future deferred amounts. The Dodgers use the deferred funds for team operations and roster building, a common strategy for high-spending franchises. The structure has drawn attention from financial analysts and sports business experts, who note its impact on team salary caps and luxury tax calculations. SEC filings and financial disclosures often highlight such deferred compensation structures in corporate and sports contexts.
Guarantees, Protections, and Injury Coverage
The contract includes a full injury guarantee, meaning Ohtani will receive his salary even if he is unable to play due to injury or illness. This protection extends to all seasons of the deal and covers both his pitching and hitting roles. The Dodgers also agreed to pay for all medical expenses related to Ohtani's care, including treatment for his previous elbow injury and any future conditions. These protections are standard for elite players but are especially significant given Ohtani's unique two-way workload and physical demands.
In addition to injury coverage, the contract guarantees Ohtani's roster bonus and performance incentives, which are paid out regardless of whether he meets the statistical thresholds. The no-trade clause ensures that Ohtani cannot be moved without his consent, adding another layer of job security. The guarantee also covers any base salary escalators built into the later years of the deal.