Shohei Ohtani's $700M Dodgers Deal Includes $90M Tax Savings

As of October 29th, 2025, MLB phenom Shohei Ohtani has taken the baseball world by storm since joining the Los Angeles Dodgers in 2024. In December 2023, Ohtani signed a groundbreaking 10-year, $700 million contract with the Dodgers, which has proven to be mutually beneficial for both the player and the team.

One of the most intriguing aspects of Ohtani's contract is the tax advantage it provides. The deal's structure allows Ohtani to legally avoid around $90 million in California state income taxes over the life of the contract. This is due to the fact that the majority of the $700 million will be deferred and paid out after Ohtani's playing days are over, at which point he can reside in a state with no income tax.

Ohtani's on-field dominance has been nothing short of historic. Since joining the Dodgers, he has won three MVP awards, been named to the All-Star team five times, and led the team to a World Series championship. In the 2025 World Series, Ohtani put on a show, hitting two home runs and two doubles in a thrilling 18-inning game. The opposing team even resorted to intentionally walking Ohtani multiple times to avoid his at-bats.

As Ohtani continues to cement his legacy as one of the greatest players in MLB history, his unique contract and tax-saving strategy have the potential to set a precedent for other high-profile athletes and highly compensated individuals seeking to maximize their earnings while minimizing their tax burden.