The Big Lead

Unpacking Shohei Ohtani's 2025 contract details

A comprehensive look at Ohtani's contract with the Dodgers, which has drawn scrutiny from California legislators as a possible tax loophole.

By J.P. Hoornstra

Mar 19, 2025; Bunkyo, Tokyo, JPN; Los Angeles Dodgers designated hitter Shohei Ohtani (17) tips his hat to fans after defeating the Chicago Cubs during the Tokyo Series at Tokyo Dome.
Mar 19, 2025; Bunkyo, Tokyo, JPN; Los Angeles Dodgers designated hitter Shohei Ohtani (17) tips his hat to fans after defeating the Chicago Cubs during the Tokyo Series at Tokyo Dome. / Darren Yamashita-Imagn Images
facebooktwitter

In April 2024, the California State Senate passed a resolution calling on Congress "to close a loophole that allows Los Angeles Dodgers player Shohei Ohtani to potentially evade a $90 million in state taxes on his $700 million dollar contract by deferring his compensation."

It isn't often that an athlete's salary draws the attention of government officials. Even less often does an athlete sign a contract like Ohtani's.

The 10-year, $700 million contract Ohtani signed with the Dodgers in Dec. 2023 set a record for total value, even with its unprecdented amount of deferred salary — $680 million, or all but $2 million a year.

The effect is that more than 97 percent of Ohtani's salary will be paid out after the 2033 season, his last under contract to the Dodgers. In the meantime, he's got more than enough money to live on; Sportico recently estimated the value of Ohtani's 2025 endorsement portfolio at $100 million, easily the most of any baseball player.

The present-day value of Ohtani's contract was calculated at $437,830,563, according to calculation by the MLB Players Association, and $460,767,680 by the league.

The actual amount of money Ohtani will take home? That depends largely on where he's a registered taxpayer after the 2033 season — if he's living in the United States at all.

According to the California Senate resolution, the Japanese-born Ohtani can avoid paying more than $90 million in state taxes, if he were to reside out of California when the deferred compensation is paid.

The process of deferred compensation is allowed under federal and state laws, letting high income earners have unlimited deferrals of compensation, and creating an unbalanced tax structure and income inequality.

Between his massive endorsements and his relatively meager salary from the Dodgers, Ohtani is still baseball's second-highest earner this season, according to Sportico.

MORE TOP STORIES from The Big Lead
MLB: GM says 'there's going to be some issues' sharing a Triple-A field with rivals
SPORTS MEDIA: Chicago radio personality engages troll on social media, gets fired
SPORTS MEDIA: Longtime baseball play-by-play voice, ESPN alum, announces retirement
MLB: Minor league team removes female anatomy-conjuring logo from website
MLB/SPORTS MEDIA: Ron Howard explains how Vin Scully inspired him

Home/MLB