'2.6 billion won' This amount, which is set at the annual salary level of rookie-level players in the Major League Baseball (MLB), is the annual salary of baseball genius Shohei Ohtani, who signed a 10-year 700 million dollar (approximately 924 billion won) jackpot contract with the LA Dodgers this year. .
Although he signed a contract worth $700 million, the largest contract in world sports history, the 'actual salary' that Ohtani receives over 10 years is only about $20 million (approximately 26.324 billion won). It is less than the $30 million annual salary that Ohtani received from the LA Angels this year.
The American media 'The Athletic' reported on the 12th, "According to an official (familiar with the situation), Ohtani agreed to 'unprecedented deferrals' in which he would receive $68 million of his $70 million annual salary after the end of the contract period. “After the contract ends, it will be distributed interest-free from 2034 to 2043,” he said.
In Major League Baseball, such contracts for deferring salary payments are collectively called ‘dipper contracts’ or ‘dippers.’ Usually, in large contracts worth more than $100 million, a clause is included in which a third of the annual salary is received at the end of the contract period. Mookie Betts, the Dodgers' signature fielder, also signed a 12-year contract worth a total of $365 million (KRW 480.3 billion) in July 2020, with $115 million (KRW 151.3 billion), equivalent to one-third, remaining during the contract period. After this was over, I chose to share it. However, Otani chose to pay a whopping 97% of his annual salary through a dipper contract. This is actually the first case in the major league. 카지노사이트
The reason Otani reduced his salary is literally because of his desire to win. There is no salary cap in MLB, but there is a 'luxury tax' system that imposes sanctions on clubs that exceed a certain threshold. However, since the luxury tax standard is based on the total contract amount, even if a payment deferral clause is included, it does not secure a very large margin.
From the club's perspective, it can increase liquidity because salaries are paid later, and it also has the effect of actually spending less money. According to FanGraphs, Ohtani's contract is actually worth 10 years and $460 million (KRW 605.6 billion), considering interest rates and monetary value. It is not a huge gap compared to the 12 years and $426.5 million (561.6 billion won) earned by Mike Trout, his teammate during his time with the LA Angels.
From Otani’s perspective, the ‘Dipper’ contract is a loss. Some analysts say that Otani, who earns $50 million (65.7 billion won) a year through various advertisements and businesses, chose to defer payments considering the tax savings. The Associated Press analyzed, “You can enjoy tax benefits because you receive a lot of money when you do not live in California, where the highest tax rate is 13.3%.”
However, the Dipper contract was first proposed to the Dodgers by Ohtani. This is a stepping stone for continued winning. As a result, the Dodgers became a team that had Mookie Betts, Ohtani, and Freddie Friedman without the luxury tax. Ohtani, who debuted in the big league with the Los Angeles Angels in 2018, has never experienced fall baseball.
The LA Dodgers, who have recently advanced to the fall stage for the 11th consecutive year, are a prestigious team representing the National League and are considered a candidate to win the World Series every year. The Athletic said, “This contract adds flexibility to the Dodgers’ cash management. As a result, the Dodgers were able to maintain a high ranking in the competition to recruit Japanese pitcher Yoshinobu Yamamoto.”