NEW YORK — Shohei Ohtani will receive just $20 million of his $700 million contract with the Los Angeles Dodgers over the next 10 years, with $680 million payable from 2034-43.
Ohtani's deal, agreed to Saturday, calls for annual salaries of $70 million, according to details obtained by The Associated Press. Of each year's salary, $68 million is deferred with no interest, payable in equal installments each July 1 from 2034-43.
For purposes of the luxury tax, the contract is valued as a yearly addition to the Dodgers' payroll of about $46 million. Under the collective bargaining agreement, for the calculation of a team's tax payroll the value of deferred money is discounted at the federal mid-term rate. For all agreements this offseason, the discounting will be at the October 2023 rate of 4.43%.
Ohtani's contract, combined with those of Mookie Betts and Freddie Freeman, raises the Dodgers' total of deferred money owed to the three to $857 million from 2033-44.
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Betts has a $365 million deal covering 2021-32 that includes $115 million in deferred salaries payable from 2033-44 and has the final $5 million of his signing bonus payable from 2033-35.
Freeman has a $162 million, six-year deal for 2022-27 that includes $57 million in deferred money payable from 2028-40.
Los Angeles' high points of the deferred payments are 2038 and '39, when the trio will be owed $83 million, and 2040, when they will be due $84 million.
By receiving the vast majority of the money when he presumably will not be living in the United States, Ohtani also figures to have a tax benefit. California's top tax rate for residents is 13.3%.
Kelly gives up number
Reliever Joe Kelly is switching uniform numbers after finalizing his $8 million, one-year contract with the Los Angeles Dodgers on Monday, opening No. 17 for Shohei Ohtani.
Kelly will wear No. 99 with the Dodgers. Ohtani's 10-year contract with Los Angeles — worth a record $700 million — was announced by the team on Monday night. The two-way star wore No. 17 with the Los Angeles Angels.
Kelly wore 58 when he started his major league career with the St. Louis Cardinals in 2012. He was No. 56 with the Boston Red Sox from 2014-18 and No. 17 with the Dodgers from 2019-21 and again last season. He also was No. 17 with the Chicago White Sox in 2022 and '23.
Remembering Davalillo
Vic Davalillo, a two-time World Series champion who spent 16 seasons in the major leagues and became the first Venezuelan-born player to win a Gold Glove, died Dec. 6. He was 84 or 87, depending on conflicting sources.
Davalillo died in Caracas after an emergency surgery due to an intestinal obstruction and renal insufficiency, daughter Helga Davalillo said.
Davalillo finished his career with a .279 average, 36 homers, 329 RBIs and 125 steals, winning World Series titles with the 1971 Pittsburgh Pirates and 1973 Oakland Athletics.
TRADES
YANKEES-DODGERS: Los Angeles acquired shortstop prospect Trey Sweeney from New York for left-hander Victor González and infielder Jorbit Vivas. The 23-year-old Sweeney was selected by the Yankees with the 20th draft pick in 2021. He hit .252 with 13 homers, 49 RBIs and 20 steals last season at Double-A Somerset.
BRAVES-WHITE SOX: Atlanta is sending $6.26 million to Chicago along with catcher Max Stassi, covering all of what he is owed next year except for the $740,000 major league minimum salary. Stassi was traded to the White Sox on Saturday. Chicago will send the Braves a player to be named or $100,000.
BRIEFLY
DIAMONDBACKS: Eduardo Rodriguez would earn $91 million over five seasons if a 2028 option is triggered in his contract with Arizona, an amount that could increase to $92 million based on innings. He would earn $100 million if he pitches a specified amount of innings and finishes in the top four in Cy Young Award voting in each of the first four seasons.
ROYALS: Kansas City signed Will Smith to a $5 million contract for the upcoming season. The Royals are hoping the left-hander will be able to close down games in the late innings in a way their bullpen struggled to last season. The 34-year-old could earn bonuses of $125,000 each for 25, 30, 35, 40, 45, 50, 55 and 60 games pitched this season.
BRAVES: Atlanta filled three openings on its coaching staff by promoting Matt Tuiasosopo and Tom Goodwin from the minor leagues and hiring Erick Abreu. After three seasons managing at Triple-A Gwinnett, Tuiasosopo replaces Ron Washington as the Braves third-base coach. Former roving instructor Goodwin takes over as first-base coach. Abreu will be the bullpen coach.