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Shohei Ohtani's mind-blowing contract with the LA Dodgers made headlines over the last few days and even reached the NBA world. Ohtani has reportedly deferred $680 million of his $700 million contract, which means he will receive $68 million per year from 2034 to 2043. So, does the NBA allow salary deferring?
According to the NBA's collective bargaining agreement, there's a limit on deferred salary compensation. Players are only allowed to defer 25.0% of their salary, which will be paid depending on the agreement with the team.
Ohtani's contract with the Dodgers is a unique one, as the MLB's CBA says that there's no limit to deferred payments. It's also a great move by both the team and the Japanese superstar in terms of making things work.
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The Dodgers can still sign players while Ohtani could avoid any deductible taxes depending on where he's living in 2034 and beyond.
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Salary deferment is different for retired players, with several prime examples over the years. The Indiana Pacers paid Monta Ellis $11 million from 2017 until the end of the 2021-22 NBA season.
The Milwaukee Bucks did the same for Larry Sanders, who earned $9.7 million in deferred salary from 2015 to 2022. Chris Bosh had $52 million when he was forced to retire in 2017 due to a blood clot issue, so the Miami Heat needed six seasons to completely pay him.
The LA Lakers also had to pay Timofey Mozgov and Luol Deng millions even though they didn't play for the team anymore. Kevin Garnett famously had a $35 million deferred salary from the Boston Celtics, which finally ended last season.
NBA star jokes about teaching son to play baseball
Spencer Dinwiddie of the Brooklyn Nets is one of several athletes who reacted to Shohei Ohtani's monster deal with the LA Dodgers. Dinwiddie joked on Instagram that it might be time to teach his son Elijah baseball rather than basketball:
"I ain't gon lie son," Dinwiddie wrote. "It's time to learn baseball. #shoheiohtani."
Shohei Ohtani's contract could have a profound effect on the sports world, including the NBA.
While the CBA has already been set until the 2029-30 season, some players might think that deferring salaries could be a great way to relieve some tax payments.
