Shohei Ohtani agreed to the richest contract in sports history over the weekend. The Dodgers inked him to a 10-year, $700 million deal to further bolster their lineup with the best true two-way player baseball has ever seen.
The deal was a market-shattering one that many believed was fair for Ohtani's services. However, it turns out that it was still a team-friendly pact for the Dodgers despite its high-end value.
It was revealed on Monday that Ohtani will see a significant portion of his salary deferred beyond the end of his 10-year deal. As a result, he will make just $2 million officially in 2024 and each season beyond it.
MORE: Breaking down Shohei Ohtani's contract with the Dodgers
Usually, deferred contracts contain within it some type of interest. Ohtani's deal does not, however, so many were wondering why he would accept that type of contract.
The answer is simple. Ohtani can help bridge the gap in any potential revenue shortcomings by relying on his endorsements as compensation.
Ohtani is one of the world's most marketable athletes. He has a strong presence in Japan and will draw more attention playing for the Dodgers than he did while playing for a hapless Angels squad. That could allow him to build on his already impressive and lucrative library of endorsement deals.
Here's what to know about Ohtani's endorsements and how much he will make from them in 2024 (and possibly beyond).
Shohei Ohtani endorsement money
It is estimated that Ohtani makes at least $40 million yearly from endorsement deals. The Los Angeles Times reports that Ohtani is "believed to be the sport’s highest earner in endorsement contracts," which shouldn't be a surprise.
That said, Ohtani may make more than $40 million. He could have endorsement deals that have not yet been reported or his contracts with each company could have increased in value.
Either way, Ohtani should make up more than half of the $68 million of his salary that he is deferring annually via his endorsement money. That's likely one of the two major reasons that he was so willing to defer such a large portion of his contract.
What is the other reason?
“The deferrals were primarily about allowing the team to be successful on the field,” a source told the Los Angeles Times. “Because above all else, he wants to win.”
MORE: Shohei Ohtani and the biggest contracts in sports history
Shohei Ohtani's endorsements
Ohtani has a wide-ranging portfolio of endorsements. Among his most notable are the following:
- New Balance
- Fanatics
- Topps
- Mitsubishi
- Japan Airlines
- Seiko
- Kose
Those represent just some of Ohtani's sponsors; he had an MLB-record 17 in 2022 and figures to see that number continue to increase.
The New Balance deal is among the most notable for Ohtani given that it's an apparel deal. He will continue to wear New Balance products while with the Dodgers as a part of that long-term commitment.
Los Angeles. A new chapter in the legend of Shohei Ohtani. pic.twitter.com/gPbtixwPLC
— New Balance (@newbalance) December 9, 2023
And with Ohtani now playing alongside Mookie Betts and Freddie Freeman with a winning team, other companies will be lining up to try to get a piece of him in his new digs. That could ultimately help him to further close the gap between his total pay for 2024 and his minuscule salary.
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- FAGAN: Finding perspective for Ohtani's mind-blowing contract
Shohei Ohtani deferred payments
As mentioned, Ohtani is going to make $2 million per year as part of his new contract with the Dodgers. That will last for 10 seasons, during which Ohtani will make $20 million in total.
After that, however, Ohtani will be paid for another 10 years by the Dodgers despite not being under contract. In those 10 seasons, he will make $68 million per year.
Below is a breakdown of Ohtani's contract structure.
| Year | Salary |
| 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 |
Why would Ohtani do this? As mentioned, he wants to play for a winner, and deferring his payments will better allow the Dodgers to add and keep talent around him as they look to contend for a championship.
MORE: Why Shohei Ohtani allowed massive portion of salary to be deferred
Ohtani's ability to earn money through endorsements played a big role in his decision. He will still be earning at least $42 million per season and perhaps more, pending any changes that could occur now that he is playing under a bigger spotlight with the Dodgers.
Add in that the 29-year-old superstar will now have a massive passive income during his post-playing days and it's hard to blame him for seeking out this type of deal.