Shohei Ohtani's Dodgers Contract: A Smart Steal with Jerome Powell as MVP

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Source: The Wall Street Journal
Shohei Ohtani's Dodgers Contract: A Smart Steal with Jerome Powell as MVP
Photo: The Wall Street Journal
TL;DR Summary

The Los Angeles Dodgers have structured Shohei Ohtani's contract in a way that allows them to pay him $700 million while only counting $460 million towards Major League Baseball's luxury tax rules. This financial maneuver relies on familiar retirement plan math and may become more common due to Jerome Powell and the Federal Reserve's interest-rate policies.

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