Shohei Ohtani s contract raises tax and planning questions financial-planning.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from financial-planning.com Daily Mail and Mail on Sunday newspapers.
Ohtani’s 10-year contract pays him only $2 million a year, deferring $680 million until after his time with the Dodgers and possibly his California residency is over. If Ohtani collects that money after returning to his native Japan, California would lose an estimated $98 million in tax revenue from him.
California Controller Malia M. Cohen is calling on the U.S. Congress to amend the tax code and impose caps on deferred payments following Shohei Ohtani's historic $700 million deal with the Los Angeles Dodgers. Ohtani's contract structure: Ohtani's groundbreaking 10-year contract has him making $2 million per year until 2034, deferring $68 million of his $70 million annual salary.
State Controller Malia Cohen said California would lose around $98 million in tax revenue since Ohtani is deferring most of his $700 million contract with the Los Angeles Dodgers. She’s asking Congress to change rules allowing unlimited deferrals.