In a groundbreaking contract, MLB superstar Shohei Ohtani has inked a record-setting $700 million deal with the Los Angeles Dodgers, deferring over 97% of the amount until after the 10-year term concludes, a source disclosed to CNN on Monday.

Under the terms, Ohtani will defer $68 million annually, with the remaining $680 million slated for payment post the 2033 MLB season. This unorthodox approach was instigated by Ohtani himself, driven by a commitment to team success and a desire to maximize the Dodgers' financial flexibility.

The Dodgers' chairman, Mark Walter, hailed Ohtani's "historic contract" and expressed excitement about collaborating with the Japanese sensation to enhance the team's on-field prowess.

While Ohtani's deal is hailed as historic due to its financial magnitude, the concept of deferring payments in substantial contracts is not entirely unprecedented. Pitcher Max Scherzer, in 2015, deferred $105 million of his $210 million salary with the Washington Nationals.

Ohtani's motivation for this unique deal stems from a dedication to winning and being a team player. By deferring the substantial sum, the Dodgers gain financial leverage to surround Ohtani with top-tier talent.

With Ohtani sitting out the 2024 season due to post-elbow surgery recovery, the Dodgers can utilize this financial flexibility to pursue sought-after players like Yoshinobu Yamamoto. Additionally, the team's maneuvering will help them avoid contributing Ohtani's full salary to MLB's luxury tax threshold, with an average annual value of $46 million.

The deal has sparked intense debates among fans, with opinions divided on the unconventional structure. Some argue it provides an unfair advantage, while others see it as a strategic move to strengthen the team.

Notably, MLB lacks a set salary cap, setting it apart from other major American sports leagues like the NBA and the NFL.

Ohtani's financial sacrifice over the next decade is mitigated by lucrative endorsements, including partnerships with New Balance, Fanatics, Topps, and various sponsorships in Japan, netting him at least $35 million annually, as per Forbes.

The 29-year-old Japanese phenom's move from the Los Angeles Angels to the Dodgers marks a significant shift in his career. The Angels expressed gratitude for Ohtani's contributions, acknowledging him as a generational player who redefined possibilities in the sport during his six seasons with the team.