(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.