24/11/30 15:49:07.65 KopVK1KI0.net
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One of the biggest misconceptions about Shohei Ohtani's contract is that the Dodgers will have an additional ten years to pay him the money.
But that's not how it works.
Major League Baseball's CBA requires teams to fully fund the present-day value of deferred payments within two years of when it is earned.
That means the Dodgers will have to place $44 million in cash into an escrow account every year.
The money will then grow with interest, and Ohtani will be paid his $68 million annual payment when the contract comes due.
It's still beneficial to the team — but it really only buys the Dodgers an additional two years when it comes to the cash leaving their bank account