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.