How Much Money Is Shohei Ohtani's Contract Currently Worth amid Dodgers Payroll Buzz?

Entering the third year of his heavily-deferred 10-year, $700 million contract with the Los Angeles Dodgers, Shohei Ohtani has slightly slid down MLB's list of the highest-paid players.

Per ESPN's Jeff Passan, the present-day value of Ohtani's contract remains "in the mid-$400 millions" even though his average annual salary based on the total value of his deal is still the richest in MLB.

Since Ohtani elected to defer $680 million in his contract when it was originally signed in December 2023, the present-day value brought it down to $460 million for the purposes of the competitive balance tax.

If you use the present-day value of $46 million per season, Ohtani becomes the third highest-paid player in MLB behind new Dodgers teammate Kyle Tucker ($60 million) and New York Mets star Juan Soto ($51 million).

Passan noted the Dodgers and Mets are two teams that will "happily oblige" including signing bonuses and deferred money in their contracts because it can help them save money in terms of potential tax payments:

"The Dodgers and Mets are content funding the deferred money—in Ohtani's case, for example, MLB rules require the Dodgers to put $44 million annually in an escrow account so it can grow to eventually pay what they owe him—because it lowers the salary used to calculate their luxury-tax bills. Other teams claim cash-flow issues keep them from larding deals with signing bonuses and deferrals."

Tucker, who signed a four-year, $240 million deal with the Dodgers in January, will technically will technically cost the team $119.9 million between his salary and the CBT cost, per Passan.

For perspective, there are currently seven teams with a total payroll under $119.9 million in MLB right now. The Dodgers' estimated tax bill of $149.1 million would be the 19th-highest payroll in the league, just ahead of the Cincinnati Reds ($147.7 million).

One reason the Dodgers have been able to spend so freely while many other teams look for ways to cut payroll is the marketing value Ohtani provided the organization made up for the entire cost of his contract within the first year of his deal.

Ohtani has won three consecutive MVP awards, including in each of his first two years with the Dodgers. He has also led the Dodgers to World Series wins in back-to-back seasons.