Per the Athletic, Ohtani is deferring $68 million of his $70 million annual salary each year of the ten year deal. The deferral payments will commence in 2034 and continue through 2043.
This lowers the Dodgers CBT charge to roughly $46 million per year (including benefits, etc.) for 10 years.
Also, I would assume this will help him save a ton on his CA state tax bill (by moving out of state following the end of his playing career).
Note: it is estimated he currently makes about $50 million/year in endorsement money so he should be in pretty good financial shape until the deferred payments kick in.
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Updated to correct error in initial post.
This lowers the Dodgers CBT charge to roughly $46 million per year (including benefits, etc.) for 10 years.
Also, I would assume this will help him save a ton on his CA state tax bill (by moving out of state following the end of his playing career).
Note: it is estimated he currently makes about $50 million/year in endorsement money so he should be in pretty good financial shape until the deferred payments kick in.
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Updated to correct error in initial post.
