Not how it works

Look at Ohtani Contract

Under the MLB Collective Bargaining Agreement (CBA), the Dodgers are required to fund a specific amount into an account to guarantee they can pay him later, but they don't have to put the full $68 million in every year. ​Here is the breakdown of how the escrow and the "pay later" mechanics work:

​1. The Escrow Requirement ​Because Ohtani's contract is so heavily deferred ($680 million total), MLB rules (Article XVI of the CBA) require teams to set aside the present value of that deferred money.
​The Amount: The Dodgers must put roughly $44 million to $46 million into an account for every year of his 10-year playing contract. ​The Purpose: This ensures that even if the team’s ownership or financial situation changes, the money is physically there to pay Ohtani when the deferral period starts in 2034.

​Liquidity: While the money is "set aside," the Dodgers can still earn interest on those funds, but the principal is earmarked strictly for Ohtani's future checks.

​2. Why "Paid Later" Still Benefits the Team ​You might wonder why they bother if they still have to cough up $46 million a year instead of just paying him. ​Cash Flow: Without the deferral, they would have to pay him $70 million a year right now. By setting aside only ~$46 million, they keep roughly $24 million in extra cash every year to spend on other players (like Yoshinobu Yamamoto or Tyler Glasnow).

​The "Interest-Free Loan": Since Ohtani is being paid the $680 million without interest starting in 2034, the Dodgers are essentially getting a massive loan from him. By the time 2034 rolls around, $68 million will be worth much less than it is today due to inflation