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Shohei Ohtani — deferring $680 million of his contract for 10 years — may face some financial risks, advisors say

From cnbc.com

Shohei Ohtani made history this week with a 10-year, $700 million contract to play for Major League Baseball’s Los Angeles Dodgers. The deal’s unique payout structure, however, could carry some risks, financial experts say. The Japanese superstar will receive $2 million per year over the 10-year agreement, which defers $68 million annually. Ohtani isn’t the first MLB player to defer income. Players such as Bobby Bonilla and Ken Griffey Jr. also chose yearly payments. In Bonilla’s case, those came with a guaranteed 8% interest rate. But Ohtani will receive the bulk of his contract, $680 million in payments, between ... (full story)

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