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Ohtani deferring $68M per year, per report

Shohei Ohtani is deferring $68 million of his $70 million annual salary from the Los Angeles Dodgers, per the Athletic, which says that the deferred salary will be paid out beginning in 2034 at no interest.

We talked earlier today about how deferring money at no or low interest reduces the overall value of the contract for Competitive Balance Tax purposes (and, of course, in terms of the net present value of the deal). With $68 million per year being deferred for 10 years at no interest, I am calculating the present value of the deferrals each year, as explained in the link above, to be a little over $43 million per year.