So let’s look at 2024 when Ohtani will earn $68 million in deferred money (deferred until 2034). That has a present value of approx $46 million today. So, the Dodgers must fund just the present value by July 1, 2026, to cover the $68 million they’ll have to pay Ohtani in 2034. Then, you do the same thing again the next year, i.e., Ohtani will earn $68 million in deferred money in 2025 that will actually be paid in 2035.
Euro, I heard on a podcast that the way it works is that the entire deferred amount has to be placed into an account once a year for MLB to view. In this case it would be $680M. Supposedly, the team could move the money out of that account the very next day and put itwhereever they wanted. I think I saw this on a podcast hosted by David Samson, former president of the Marlins. He claims this is why the Dodgers are one of the very few teams who could pull this off because not every team would have $680M lying around for this kind of purpose even for just one day.