One question I have on the deferred money - Do state income taxes on that deferred money depend on where the player lives when it's paid out, or would it be taxed by the state of California irregardless of where the player lives?
Depending on the answer to that question, I would think the state government of CA would be pretty pissed about how the Dodgers are paying players, too - assuming Ohtani moves to an income tax-free state or back to Japan right after he retires and the $68M annual deferred money starts coming in. Even if it's ultimately taxed by CA, they're missing out on a pretty large chunk of tax revenue now when, quite frankly, they really need it.
The only solution I can see is MLB taking over all broadcast rights and then sharing it across the league equally. Big market teams still keep some of their financial advantages, but the funny money gets distributed evenly so mid and small market clubs at least have a prayer of competing on the field. It's either that, or you put a cap on what local TV revenue can be used to fund player payroll, AND put a tight cap on the percentage of what any player's contract can be deferred.