As the first details of Shohei Ohtani's deal began to drip out over the weekend, the initial response in some rival front offices was fury. Though the exact numbers weren't yet known, it was clear that much of the $700 million that L.A. agreed to pay Ohtani would be deferred. Executives across baseball hypothesized that the Los Angeles Dodgers might have skirted payroll rules with the unusual structure of the contract.
A few days later, the full extent was revealed: Ohtani's salary is actually just $2 million per season. A full 97% of his salary -- $680 million of the contract -- will be deferred until later this century. But as executives have had time to process the Ohtani deal, cross-referencing the contract with the collective bargaining agreement rules, a broader truth has settled in: The Dodgers did nothing wrong.
To be sure, it's a monster deal, and it's a deal that some small-market owners will inevitably point to as they angle for changes in the next collective bargaining agreement. Even considering deferrals, Ohtani will cost the Dodgers more in 2024 than the entire Oakland roster, apparently. But it's a strange deal. And most importantly, within the language of the current CBA, the arrangement between Ohtani and the Dodgers appears to be perfectly legal: "There shall be no limitations on either the amount of the deferred compensation or the percentage of total compensation attributable to deferred compensation..."
