When Shohei Ohtani signed the richest contract in baseball history, headlines focused on the record-breaking numbers. But one detail stood out: a staggering $680 million in deferred payments, spread across decades. For many, the structure seemed bizarre, even unprecedented. For Ohtani, however, it was a calculated decision driven by loyalty, vision, and a promise to his team.

Deferred contracts are nothing new in Major League Baseball. From Bobby Bonilla’s famously stretched payments to Max Scherzer’s Washington deal, players and teams have often used such structures to balance financial priorities. Yet, Ohtani’s agreement dwarfs them all. Why would the game’s most marketable star delay such a colossal sum? For Ohtani, the answer lies in his unwavering commitment to winning.

Shohei Ohtani’s strategic move for the franchise

According to USA Today, Stan Kasten, the president and part-owner of the LA Dodgers, talked about his reaction to Ohtani deferring the deal. Kasten mentioned that Ohtani believed he didn’t need the $70 million annual salary due to his substantial off-the-field endorsements. As a result, the savings would allow the Dodgers to build a stronger team around him. He added that the deferrals reduced the Dodgers’ luxury tax commitment from $70 million to $46 million each year.

In the same post, Shohei Ohtani talked about the reason for this decision. Ohtani said, “You know, Mark, Andrew, the owners, we all made a promise to each other that we would go out and create the best team to put out on the field. And we were able to win the World Series, so in that sense, we were able to keep our promise towards each other.

The deferrals free up significant payroll space for the Dodgers, allowing them to target elite free agents and strengthen the roster. Sources suggest Ohtani demanded assurances that the front office would re-invest aggressively in talent. His deferral, in essence, becomes a competitive advantage for the team. This decision also speaks to Ohtani’s financial foresight. With endorsement earnings estimated at $40 million annually, Ohtani can afford to take a long-term view. The delayed payments ensure financial security well beyond his playing years while minimizing the team’s short-term cap burden.

Critics initially called the deferrals “ridiculous,” arguing they undervalued Ohtani’s immediate worth. But he dismissed such claims by saying he isn’t chasing short-term glory or instant wealth. He’s investing in something bigger—a legacy built on trust, teamwork, and championships. Ohtani’s blend of selflessness and strategic thinking sets a new standard for baseball’s elite. With this bold decision, Shohei Ohtani isn’t just chasing greatness on the field but also laying the foundation for a legacy built on teamwork.

The deferral deal comes with both risks and rewards

Shohei Ohtani’s $680 million deferral is a financial gamble for both sides. For the team, committing to decades of payments ties up resources for years, even after Ohtani retires. If injuries or performance issues arise, the franchise could end up paying significant sums for a player no longer contributing on the field. For example, Albert Pujols’ long-term deal with the Angels became a burden during his later, less productive years. Inflation and economic shifts also pose a risk, potentially making future payments more costly in real terms.

For Ohtani, the risks are different. By deferring such a large sum, he sacrifices immediate access to his earnings. Economic instability or unforeseen circumstances could impact the value of these payments over time. However, the rewards are equally significant. Ohtani secures guaranteed income long after his playing days and ensures his legacy as both a financial and competitive cornerstone for the team. It’s a calculated move that balances short-term sacrifice with long-term security.

By prioritizing team flexibility and long-term success over immediate earnings, Ohtani reshapes how superstars approach their contracts. This bold move cements him as more than just a generational talent—he’s a leader investing in a legacy built on championships and enduring impact, both on and off the field.