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Superstar Shohei Ohtani recently signed a unique contract with the Los Angeles Dodgers.
The total value of his contract is $700 million, but he will only receive $20 million over the next 10 years. The remaining $680 million will be paid from 2034 to 2043 so the team can have more financial flexibility in the next few years.
Pitcher and hitter Ohtani left the Los Angeles Angels as a free agent to join the Dodgers. In a statement released by the Dodgers on December 11, Ohtani thanked the team and its fans. He also said that they all have the common goal of winning World Series championships for Los Angeles.
The contract shows that Ohtani will have an annual salary of $70 million. However, $68 million of each year’s salary will be deferred. It will be paid in installments every July 1 from 2034 to 2043.
The Dodgers also used this unique contract with players like Mookie Betts and Freddie Freeman. The total deferred money owed by the Dodgers from 2033 to 2044 will be $857 million.
Ohtani’s contract sets a new record in baseball. The previous highest contract was for Mike Trout, 12 years for $426.5 million.
With this contract, Ohtani will receive most of his money when he is not living in the United States, so he will probably pay less taxes.
Ohtani will also earn money for doing endorsements and advertising.
Vocabulary
- Superstar – A very famous and talented person, like a celebrity
- Sign – to write your name on a document to show that you agree with it or that you have written it yourself
- Unique – One of a kind or different from everything else; special
- Contract – an agreement between two or more people or organizations; an agreement to perform or complete a job
- Value – how much something is worth in money; “price”; the importance, worth, or usefulness of something
- Million – 1,000,000 = one-million
- Remaining – the ones that are left after some have been taken away
- Financial – related to finance, money or banking
- Flexibility – The ability to change or adapt easily;
- Pitcher – A player in baseball who throws the ball to the batter;
- Hitter – The player who tries to hit the ball with a bat in baseball
- Free agent – A player who is not tied to any team and can choose where to play
- Statement – a clear message; declaration; announcement
- Release – To let go or set free; to let out into the world; to let something out
- Fan – a person who likes a sport, team, or celebrity; supporter; follower
- Common – occurring or appearing frequently; something that happens often or is normal; usual
- Goal – aim or purpose; objective; target; something you want to achieve or complete
- Championship – A big competition to find the best team or player; The biggest prize in a sport
- Show – to prove something or make the truth or existence of something known; confirm; demonstrate; to display; to represent
- Annual – every year; yearly; one year
- Salary – the money that someone is paid for the work they do, usually paid to them on a regular basis (weekly, monthly or yearly)
- Deferred – Something that is delayed or put off until later; to push something back to a later time
- Installment – Paying for something in small parts over time; A little piece of something bigger
- Owe – To have a duty to pay or repay something to someone; To have to pay back money
- Set a record – Set a record – to achieve/accomplish/do something better or more significant than anyone has done before; the most or least ever measured
- Endorsement – Approval or support, especially from famous people; When a famous person recommends a product
- Advertising – the action of showing a product or service so people want to buy it; the activity of creating advertisements and making sure people see them;
Quiz
Discussion Questions
- Do you think it’s a good idea for sports teams to use deferred payments in contracts? Why or why not?
- If you were a professional athlete, would you prefer a high annual salary or a contract with deferred payments? Why?
- Do you think athletes deserve such high salaries compared to other professions? Explain your answer.
- How might this type of contract affect the future of salaries and contracts in sports?
- English teachers looking for teaching ideas, check out my post on using easy news articles for lessons.
- English learners looking for study ideas, check out my post on using news stories for English practice.
Original Story
Fill-in-the-Blank Listening Practice
Superstar Shohei Ohtani _____ signed a unique contract with the Los Angeles Dodgers.
The _____ value of his contract is $700 million, but he will only receive $_____ million over the next 10 years. The _____ $680 million will be paid from 2034 to 2043 so the team can have more _____ flexibility in the next few years.
_____ and hitter Ohtani left the Los Angeles Angels as a free agent to _____ the Dodgers. In a statement _____ by the Dodgers on December 11, Ohtani thanked the team and its _____. He also said that they all have the common goal of _____ World Series championships for Los Angeles.
The contract shows _____ Ohtani will have an annual salary of $70 million. However, $_____ million of each year’s salary will be deferred. It will be paid in installments every _____ 1 from 2034 to 2043.
The Dodgers also _____ this unique contract with players like Mookie Betts and Freddie Freeman. The _____ deferred money owed by the Dodgers from 2033 to 2044 will be $_____ million.
Ohtani’s contract _____ a new record in baseball. The previous highest contract was for Mike Trout, _____ years for $426.5 million.
With _____ contract, Ohtani will receive most of his _____ when he is not living in the United States, so he will probably _____ less taxes.
Ohtani will also _____ money for doing endorsements and advertising.
