Shohei Ohtani shocked the baseball world twice this week.
The first shock came when he shattered records by signing a 10-year, $700 million contract with the Los Angeles Dodgers. The second was when reports emerged that the 29-year-old two-time MVP would only be taking home a fraction of that amount over the life of the deal, deferring the remaining $680 million until after he has hung up his spikes.
A deferral of that magnitude is unheard of. Instead of receiving $70 million per year for the next 10 seasons, All-Star hitter and pitcher will reportedly only collect $2 million annually over that span, according to The Athletic.
Starting in 2034 — when he will be 39 years old — and going until 2043, Ohtani will receive $68 million per year.
Get top local stories in Philly delivered to you every morning. Sign up for NBC Philadelphia's News Headlines newsletter.
That means that the Japanese slugger's earnings over the next 20 years will look like this:
- 2024: $2 million
- 2025: $2 million
- 2026: $2 million
- 2027: $2 million
- 2028: $2 million
- 2029: $2 million
- 2030: $2 million
- 2031: $2 million
- 2032: $2 million
- 2033: $2 million
- 2034: $68 million
- 2035: $68 million
- 2036: $68 million
- 2037: $68 million
- 2038: $68 million
- 2039: $68 million
- 2040: $68 million
- 2041: $68 million
- 2042: $68 million
- 2043: $68 million
The deal, the structure of which reportedly came from Ohtani himself, will give the Dodgers more financial flexibility to continue building a competitive team around him during his prime playing years.
Money Report
But that doesn't mean Ohtani will only be living off of $2 million per year for the next decade. The phenom is one of the highest-paid athletes in sports off of endorsements alone, raking in a reported $50 million annually.
His sponsors include Japanese watchmaker Seiko as well as Fanatics and Topps. Earlier this year, he signed a long-term endorsement deal with New Balance.
That said, by the time all is said and done, Ohtani will be baseball's all-time leader in on-field earnings. He earned just over $42 million during his six seasons with the Angels.
DON'T MISS: Want to be smarter and more successful with your money, work & life? Sign up for our new newsletter!
Get CNBC's free Warren Buffett Guide to Investing, which distills the billionaire's No. 1 best piece of advice for regular investors, do's and don'ts, and three key investing principles into a clear and simple guidebook.
