Olivia ThompsonThe Los Angeles Dodgers blanked the Angels 6-0 on 15 May 2026 in the opening game of the Freeway Series, with eight relievers combining for a two-hit shutout and Andy Pages providing the decisive blow with a three-run homer. The annual three-game set at Angel Stadium has taken on a different texture since 2024: one franchise is in full dynasty mode, the other is rebuilding. The player most responsible for that gap, Shohei Ohtani, is playing for the Dodgers on a deal that is arguably the most sophisticated athlete contract structure in professional sports history. For Australian athletes navigating large earnings and irregular income, the way Ohtani structured his $700 million contract holds genuine financial planning lessons.
The Contract That Rewrote the Rulebook
When Shohei Ohtani signed with the Los Angeles Dodgers in December 2023, the headline figure — $700 million over 10 years — was staggering. But the mechanics beneath the headline matter far more. Ohtani agreed to defer $680 million of that sum, receiving just $2 million per year through the active contract period. The remaining $680 million — in post-contract deferred payments — begins flowing at $68 million per year from 2034 to 2043.
The structure serves multiple purposes. For the Dodgers, it dramatically reduces the luxury tax calculation, allowing the team to load up with other elite players. For Ohtani, it provides long-term, structured income that extends well beyond his playing career. It is also, depending on California tax law changes in the coming years, potentially advantageous from a residency planning perspective.
The critical insight for any high-earning athlete is this: the moment you receive a large payment is not necessarily the optimal moment to take it.
What Australian Athletes Can Learn
Australia's elite athletes in AFL, NRL, cricket, and tennis regularly face versions of the same challenge Ohtani's advisers solved: how to manage a relatively short earning window to produce long-term financial security. The typical Australian professional athlete has an active career of 5 to 12 years, depending on the sport. During that window, they may earn more than they will in any subsequent decade — but the management of that income is often left to informal family arrangements or inexperienced advisers.
The Australian government's MoneySmart resource explicitly highlights the importance of planning for income after high-earning periods end — a challenge that athletes face far earlier than most professionals.
Three specific lessons from the Ohtani contract apply directly to Australian athletes:
1. Understand the difference between earning and receiving
Ohtani earns $700 million across his career. He does not receive $700 million during his playing years. The distinction matters for tax planning, superannuation contribution strategies, and lifestyle spending decisions. Australian athletes who receive large contracts or signing bonuses often treat the gross figure as immediately available. A qualified financial adviser will frame the net figure differently — and plan accordingly.
2. Structure income to extend beyond the active career
The Dodgers' deferred payment structure is unusual in professional sports, but the underlying concept — spreading income across decades rather than concentrating it in playing years — is directly applicable to Australian athletes. Options available locally include income protection insurance, superannuation contributions above the standard rate, deferred compensation arrangements through clubs, and investment structures that generate returns during and after the playing career.
Australia's superannuation system, which the US professional sports model lacks, gives Australian athletes a structural advantage. An elite athlete who maximises concessional contributions throughout a 10-year career and invests strategically within super can generate a materially different retirement position than one who spends at their current income level throughout their career.
3. The tax burden on large irregular income is a planning opportunity
When the Freeway Series ends and the Dodgers keep winning, Ohtani's advisers will be working on the tax implications of each deferred payment. California's income tax — the highest of any US state at 13.3% — applies to income earned in California, regardless of when it is received. Australian athletes face a different but equally complex landscape: income earned during a high-tax period can be managed through timing, entity structuring, and superannuation to reduce lifetime tax liability.
The Angels Rebuilding Phase: A Financial Parallel
The Angels have spent years paying large contracts — most notably Mike Trout's $426.5 million extension — to players whose production has not matched the expenditure. Trout has been limited to a fraction of available games through injury, creating a real financial analogy for athletes who do not insure their income or career.
Australian athletes in contact sports face a heightened version of this risk. An NRL or AFL player whose career ends unexpectedly through injury may have years of expected income evaporate overnight. Income protection insurance, total and permanent disability cover, and structured exit planning are tools that elite athletes — like elite franchises — need to deploy before they become necessary.
The Financial Team Behind the Contract
One detail from the Ohtani deal that rarely makes headlines: he is represented by one of the most sophisticated athlete management agencies in professional sports. The deferred structure required detailed modelling, legal review, and collaboration between financial advisers, agents, and lawyers before a single dollar was confirmed.
Australian athletes at the top of their sport increasingly have access to this level of support. Those in the middle tiers — professional but not elite — often do not. That gap is where financial planning mistakes tend to compound.
On Expert Zoom, verified wealth management professionals with experience in sports income structures can help Australian athletes at any career stage model their options, structure their earnings, and plan for the financial life that follows their final game.
The Dodgers and Angels will play the finale of the 2026 Freeway Series on 17 May. When the last out is recorded, the income gap between those two rosters will be discussed in baseball terms. The wealth planning gap — and how to close it — is a conversation every Australian athlete should be having with the right adviser.
This article provides general information only and does not constitute financial advice. For personal financial planning specific to your situation, consult a qualified Australian financial adviser.
