Ohtani Contract Structure and Total Value
Shohei Ohtani signed a 10-year, $700 million contract with the Los Angeles Dodgers on December 10, 2023, making it the largest deal in MLB history by total value. The contract includes $680 million in guaranteed money, with the two remaining years fully guaranteed as well. The agreement features a full no-trade clause, an opt-out after the 2033 season, and a club option for 2034 that can vest based on performance incentives. The structure is designed to minimize luxury tax impact in the early years while keeping Ohtani under contract through his age-39 season. The contract details are publicly available via the Dodgers’ official announcement and verified by major sports outlets including ESPN and MLB.com Shohei Ohtani agrees to 10-year, $700M deal.
The financial terms of the Ohtani contract have been analyzed by Forbes and other financial outlets for their impact on the Dodgers’ balance sheet and MLB’s luxury tax system. The deal is structured with back-loaded salary payments, meaning the annual cash outlay rises significantly in later years. The Dodgers front office has stated that the contract uses standard deferred payment mechanisms common in MLB free agency. The total value of $700 million places Ohtani ahead of previous record deals such as Juan Soto’s 15-year, $765 million contract and Bryce Harper’s 13-year, $330 million deal. The contract includes standard performance bonuses for awards, All-Star selections, and statistical milestones, which can increase the total compensation slightly beyond the base $700 million.
Ohtani Annual Salary and Deferred Payment Schedule
Year-by-Year Salary Breakdown
The Ohtani salary schedule starts at $2 million in 2024 and rises incrementally to $68 million in 2033, with the final two years of the deal carrying annual salaries of $68 million as well. The Dodgers have structured the contract so that the bulk of the deferred money is paid out after Ohtani’s playing career ends. The annual cash payments for the 2024 and 2025 seasons are $2 million and $20 million respectively, which keeps the Dodgers under the luxury tax threshold in the short term. The salary jumps to $30 million in 2026 and climbs steadily through the 2030s, reflecting the back-loaded nature of the deal. The contract includes a full no-trade clause and a player option for the 2034 season, giving Ohtani control over his late-career flexibility.
Deferred Payment Mechanics
The deferred portion of Ohtani’s contract means the Dodgers will pay a significant share of his salary years after he retires or leaves the team. The structure is similar to other mega-deals in MLB, where teams defer payments to manage cash flow and luxury tax calculations. The Dodgers have disclosed that the deferred payments are funded through standard team revenue streams and are not backed by external financing. The annual luxury tax hit for the Dodgers will increase substantially as the salary escalates in the late 2020s and early 2030s. The contract also includes standard incentive clauses for postseason performance, Cy Young awards, and MVP honors, which can trigger additional payments beyond the base salary schedule.
Ohtani Net Worth and Off-Field Earnings
Endorsements and Business Ventures
Shohei Ohtani