Shohei Ohtani (30-LA Dodgers) has made Major League Baseball (MLB) history with an astronomical amount of money and an unprecedented deferred payment agreement. However, the U.S. tax authorities are not happy with the deal.

"California's state auditor said the state legislature should 'close a loophole that allows Ohtani to avoid paying tens of millions of dollars in taxes to California,'" the Los Angeles Times reported on Sept. 9.

Ohtani signed an astronomical 10-year, $700 million contract with the Dodgers last month. It is the largest contract in North American professional sports history. The previous record was a 10-year, $450 million contract for quarterback Patrick Mahomes from the Kansas City Chiefs of the National Football League (NFL) in 2020. In Major League Baseball, the previous record was the 12-year, $426.5 million extension that Mike Trout signed with the Los Angeles Angels ahead of the 2019 season, and in free agency alone, Aaron Judge signed a nine-year, $360 million deal with the New York Yankees last year.

What's even more surprising is that Ohtani's contract actually pays him much less. He only receives $2 million (about $2.6 billion) of his $70 million (about $92.2 billion) annual salary each year. A whopping 97% of the contract total, $680 million (about 89.65 billion won), will be paid out later. According to local reports in the US, he will receive the rest of the money interest-free for 10 years after the end of the contract period, from 2034 to 2043. These are so-called "deferrals" in Major League Baseball, where a team and a player sign a very large contract, and the team pays a portion of the salary at a later date.

What's more, Ohtani himself requested the deal in the first place. He wanted the team to delay paying his big salary so they could sign another player. In fact, the Dodgers did just that, adding pitchers Yoshinobu Yamamoto and Tyler Glasnow and outfielder Teoscar Hernandez. In his introductory press conference, Ohtani said, "I think it's possible to have a deferred contract for any player with a large contract, and it's up to the player to decide the amount. That way, if the club has flexibility in the payroll, I can accept it later," he said.

However, the state of California has complained about the deferred contract. The gist of it is that "if you leave California after 2034, you'll pay less in taxes. Ohtani will pay a 37% federal personal income tax and a 13.3% California state tax. While federal taxes are something he'd have to pay anyway if he lived in the U.S., state taxes are a different story. If Ohtani moves out of state after his contract ends, he won't be able to collect California taxes. California's personal income tax is the highest in the 50 states. Florida and Texas, on the other hand, have no personal income tax.

 The state of California would lose about $98 million in tax revenue if Ohtani moved out of state, according to the publication. "The current tax system rewards high earners and creates an imbalance in the tax structure," said State Controller Malia Cohen. "Without a reasonable cap on deferrals, it creates income inequality and hinders redistribution," she said.

"We urge state legislatures to take decisive action immediately," Cohen said. "Implementing a cap on deductions for high earners emphasizes social responsibility and contributes to a fairer tax system," he added. If the law is changed, Ohtani could be forced to pay taxes in California even if he moves out of state.

Ohtani isn't the only Dodger to find tax savings in response to California's notoriously high state taxes. In the case of Yamamoto, who became the highest-paid pitching free agent in history when he signed for $325 million ($42.9 billion) in 2012, the team put a $50 million ($65 billion) down payment on his contract. "According to Robert Raiola, a certified public accountant with the accounting firm PFK, if Yamamoto doesn't live in California, he won't pay taxes on the down payment," The Athletic reported. "The Dodgers will pay Yamamoto the full amount in 2024, saving the team $7.2 million ($9.5 billion) in taxes." 카지노사이트가이드 

In six big league seasons, Ohtani, who signed with the Angels prior to the 2018 season after playing five seasons with Nippon Ham in the NPB, batted .274 (2483-for-681) with 171 home runs, 437 RBI, 428 runs scored, 86 doubles, a .366 slugging percentage, a .556 on-base percentage and a .922 OPS in 701 games. On the mound, he started all 86 games, going 38-19 with a 3.01 ERA, 608 strikeouts in 481⅔ innings, 173 walks, and a 1.08 WHIP. He was the American League Rookie of the Year in 2018 and the league's unanimous MVP in 2021 and last year.

In 2023, Ohtani batted .304 with 44 home runs, 95 RBI, 102 runs scored, 20 doubles, a .412 on-base percentage, a .654 slugging percentage, and a 1.066 OPS in 135 games as a hitter, and went 10-5 with a 3.14 ERA and 167 strikeouts in 132 innings as a pitcher. His Wins Above Replacement (WAR) ranked first in the majors according to both FanGraphs (9.0) and Baseball-Reference (10.0). This was despite a mid-September season-ending tear of the medial collateral ligament (UCL) in his right elbow. He led the league in home runs, something he hadn't done in two years, and also led in slugging percentage and on-base percentage.

Ohtani won his second unanimous MVP award. He also won the American League Silver Slugger Award for Designated Hitter and the Edgar Martinez Award, which recognizes the league's best designated hitter, for the third consecutive year (2021-2023).