Baseball player Shohei Ohtani has signed a massive contract with the Los Angeles Dodgers worth $700 million. This 10-year deal is the richest sports contract ever and includes a unique structure where Ohtani will defer over 97% of his pay until the end of the contract. This arrangement is similar to Bobby Bonilla's famous deal with the New York Mets. Ohtani will only receive $2 million annually until 2033, with the remaining $680 million coming after that. The contract benefits both the Dodgers and Ohtani, as the team can still afford to sign other players and avoid significant luxury tax penalties, while Ohtani can secure a large sum of money while maximizing his chances of winning championships. The backloaded nature of the contract also reduces Ohtani's personal tax liability. Ohtani's extensive endorsement portfolio and global appeal allow him to rely on his endorsement earnings rather than his Dodgers salary. It is unlikely that many other athletes will be able to negotiate such backloaded deals in the future, as it requires a combination of global appeal, financial resources, and endorsement power.
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