Shohei Ohtani’s journey into free agency captivated baseball enthusiasts and pundits alike, who eagerly speculated on his future team and contract for the past couple of years. The Los Angeles Dodgers emerged as the expected landing spot, ultimately securing Ohtani’s services. However, the particulars of the agreement, a staggering 10-year, $700 million deal with 97% of the funds deferred, surprised many observers.
Expressing his anticipation during the introductory press conference, Ohtani voiced his eagerness to join the Dodgers. He shared insights from his discussions with the team’s ownership, revealing their shared commitment to winning. Despite the Dodgers consistently making the playoffs over the last decade, they regarded it as a failure due to their sole World Series title. Ohtani resonated with their championship-driven ethos, aligning with his own aspirations.
The unprecedented nature of the contract extends beyond its sheer monetary value, impacting both the Dodgers’ and Ohtani’s tax obligations. Depending on the perspective—from annual breakdowns over 10 years to considerations for luxury tax and player union calculations—the contract’s value fluctuates significantly. Additionally, its structure, spanning two decades with varying payout schedules, further complicates its financial implications.
The deal eclipses the previous record-holder, Ohtani’s former teammate Mike Trout, who inked a 12-year, $426.5 million contract with the Los Angeles Angels in 2019. Furthermore, it surpasses notable contracts in other major sports, such as Patrick Mahomes’ decadelong, $450 million NFL deal, marking it as the most substantial contract in North American sports history. Even when comparing to Lionel Messi’s reputed four-year, $674 million deal with Barcelona FC, Ohtani’s contract, excluding deferred sums, edges ahead in total value, though certain bonuses inflated Messi’s reported figure.
