‘Mad Dog’ Russo Blasts LA Dodgers for Skirting Luxury Tax With ‘Completely Unfair’ Deferment Plan in Shohei Ohtani’s $700M Contract
Sports pundit Chris ‘Mad Dog’ Russo was furious with the Los Angeles Dodgers trying to get away with what could be the steal of the century with Shohei Ohtani’s contract structure.
On Saturday, the Dodgers sent shockwaves throughout the sports world when it was revealed the team signed the Japanese two-way star to a 10-year contract worth $700 million. It finally put to rest a free agency tour that some people — including Russo — had grown tired of.
Then, ESPN insider Jeff Passan revealed that Ohtani will only be paid $2 million of that of that $70 annual salary throughout the duration of his contract. The remaining $680 million will be paid when his current contract expires.
Because of Ohtani’s growing popularity — he makes an estimated $50 million per year through endorsements — he reportedly suggested the plan to give the Dodgers more money to sign other stars.
The structure of the deal, first reported by @FabianArdaya, is unprecedented. Multiple people involved have said Ohtani proposed the structure and that toward the end of negotiations he said he wanted to defer his salary. His off-the-field earnings are significant enough for it.
— Jeff Passan (@JeffPassan) December 11, 2023
Deferment plans aren’t uncommon in baseball, with the most notorious example being former player Bobby Bonilla being paid by the New York Mets until 2035. Bonilla, however, gets paid just $1.19 million every year. A decade from now, Ohtani will make $68 million in annual payments.
Russo couldn’t believe it.
“That is completely bogus,” Russo said Monday night. “That’s circumventing the [luxury tax]. The whole idea of the luxury tax is to prevent hoarding of Major League players! This is an absolute disgrace! This is completely unfair to the ethics of the game! Baseball cannot allow this! They gotta look into this and change this.”
Unfortunately for Russo, the league has to allow it. The current collective bargaining agreement specifically states there’s no limit to how much money a team can defer.
For anyone wondering if MLB will challenge or cancel Ohtani’s contract: The answer is unequivocally no. There is a specific article in the collective-bargaining agreement that addresses this. And it’s very clear: Deferred money is limitless — even $680 million of $700 million. pic.twitter.com/DGNK0JulED
— Jeff Passan (@JeffPassan) December 11, 2023
“This is a joke!” Russo continued. “Baseball is gonna allow this? They’re gonna allow the Dodgers to bring on Ohtani and allow them to defer all the money so they don’t get murdered by the luxury tax to give them a chance to sign all these players? Why don’t we just give the Dodgers every player?”
“You’re gonna allow this? You’re gonna allow this contract to go down where they don’t have to pay a luxury tax? This is why baseball’s gotta have a salary cap. This is why this sport’s a joke. You can’t take this seriously.”
Listen above via Sirius XM.
