[Mick]

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 20 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.

I think you're right about that. Current law holds that, even if you "earn" the funds in one year but they are paid in another year, they aren't taxed until they are "constructively available", Franchise Tax Board publication 1031. Same basic idea as with pensions and retirement funds...you pay the tax when you have access to the money. Not sure if that's true if he's moved back to Japan, definitely true if he moves to another U. S. state.

[Mick]

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 20 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.

I think you're right about that. Current law holds that, even if you "earn" the funds in one year but they are paid in another year, they aren't taxed until they are "constructively available", Franchise Tax Board publication 1031. Same basic idea as with pensions and retirement funds...you pay the tax when you have access to the money. Not sure if that's true if he's moved back to Japan, definitely true if he moves to another U. S. state.