BELOW SUPERNAV drop zone ⇩

Ohtani’s $700M Dodgers deal gets lawmakers’ attention

  • His deal has the potential to save $98 million in state tax
  • California controller wants Congress to change the tax code
  • Attorney: ‘Don’t hate the player, hate the game’

MAIN AREA TOP drop zone ⇩

MAIN AREA TOP drop zone ⇩

BE - Test Share

More Sports

AUTO TEST CUSTOM HTML 20241114185800

AUTO TEST CUSTOM HTML 20241115200405

AUTO TEST CUSTOM HTML 20241118165728

AUTO TEST CUSTOM HTML 20241118184948

(NewsNation) — MLB superstar Shohei Ohtani’s blockbuster Dodgers contract has caught the eye of California lawmakers.

California Controller Malia M. Cohen wants Congress to change the tax code to cap deferred payments, a change that could ensure the state is owed more money from Ohtani.

Cohen made the request four weeks after the two-way star and the Los Angeles Dodgers agreed to a record $700 million, 10-year contract that contains $680 million in deferred payments due from 2034-43. If Ohtani is not living in California at the time he receives the deferred money, he potentially could avoid what currently is the state’s 13.3% income tax and 1.1% payroll tax for State Disability Insurance.

But as far as Ohtani’s deal is concerned: “Don’t hate the player, hate the game,” says attorney Jeff Monahan.

“Wealthy and more affluent people have advisors and attorneys and accountants to help them avoid (tax penalties). But you know, this is how the tax game works.”

Ohtani’s deal has the potential to save $98 million in state tax, according to the California Center for Jobs and the Economy, a public benefit corporation that aims to provide information on job creation and economic trends.

But Monahan said he also “sees where the controller is coming from.”

“A lot of California’s revenue comes from their top earners in that particular state,” said Monahan. “So when you start to remove people like Ohtani, who make $70 million a year, it starts to hit her the bottom line.”

Ultimately, Monahan doesn’t think there’s much that can be done about Ohtani’s contract.

“This is already a collectively bargained issue,” said Monahan. “The players in Major League Baseball have already agreed that they can defer as much income as they want. So I don’t really know what she (Controller Malia Cohen) expects Congress to do about it.”

The Associated Press contributed to this report.

Sports

Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed

Site Settings Survey

 

MAIN AREA MIDDLE drop zone ⇩

Trending on NewsNation

AUTO TEST CUSTOM HTML 20241119133138

MAIN AREA BOTTOM drop zone ⇩

tt

KC Chiefs parade shooting: 1 dead, 21 shot including 9 kids | Morning in America

Witness of Chiefs parade shooting describes suspect | Banfield

Kansas City Chiefs parade shooting: Mom of 2 dead, over 20 shot | Banfield

WWE star Ashley Massaro 'threatened' by board to keep quiet about alleged rape: Friend | Banfield

Friend of WWE star: Ashley Massaro 'spent hours' sobbing after alleged rape | Banfield

Clear

la

54°F Clear Feels like 54°
Wind
3 mph S
Humidity
92%
Sunrise
Sunset

Tonight

Partly cloudy this evening, then becoming cloudy after midnight. Low near 50F. Winds light and variable.
50°F Partly cloudy this evening, then becoming cloudy after midnight. Low near 50F. Winds light and variable.
Wind
3 mph ENE
Precip
15%
Sunset
Moon Phase
Last Quarter