Shohei Ohtani's 10-year, $700 million contract with the Los Angeles Dodgers has been in the spotlight ever since he signed it because of how unique it is. What MLB fans care about in the contract, beyond the outlandish $700 million number, is that all but $20 million of that deal is deferred. This means that Ohtani gets just $2 million in salary every year, and will see the rest of that money paid out once he retires. That has allowed the Dodgers to go nuts, adding to their roster around Ohtani.
As wild as the deferred payments are, we've seen deals with deferred money in MLB before (albeit not at this scale). Something even rarer within Ohtani's deal is what's called a “key man” clause, per The Athletics' Fabian Ardaya. This clause essentially means that if either owner Mark Walter or president of baseball operations Andrew Friedman were to depart at any point during Ohtani's deal, he'd earn the right to opt out and test free agency after the year. While Friedman certainly isn't going anywhere anytime soon, recent news suggests Walter's standing with the Dodgers isn't quite as clear, and that could lead to uncomfortable conversations being had about Ohtani's future.
Mark Walter's Lakers' sale raises questions about Dodgers future
It was revealed on Wednesday that Walter is going to sell his share of the Los Angeles Lakers to Josh Kushner and Bob Iger in exchange for $12.5 billion. This is not particularly notable not only because he purchased the Lakers less than a year ago, but also because his insurance companies are reportedly under investigation by the U.S. Attorney’s Office.
With that being said, Walter is not currently facing any criminal charges, and as Ardaya noted, Walter's Lakers sale is not expected to impact his Dodgers ownership in any way. While that's certainly good news for Dodgers fans, things can change at any moment. I mean, who had Walter selling the Lakers this quickly?
If (and it's obviously a big if), Walter were to sell the Dodgers, that could have a major impact on the franchise given Ohtani's clause.
Shohei Ohtani's unique contract has a chance to strike again
Ohtani's contract is, by all accounts, the greatest in the history of sports, given all he's done on the field and all the money he's brought the Dodgers. The uniqueness of it has allowed the Dodgers to build a dynasty around Ohtani, but the uniqueness of it could also unravel in an eyeblink if anything were to happen with Walter.
“Everybody has to be on the same page in order to have a winning organization,” Ohtani explained through an interpreter at his introductory news conference on Dec. 14, 2023. “I feel like those two are at the top of it and they’re in control of everything, and I feel almost like I’m having a contract with those two guys. “I feel like if one of them is gone, then like I said, (we) might not be on the same page, things might get a little out of control, so I just wanted like a safety net.”
Now, while Ohtani has the option to opt out, that doesn't mean he's going to. Not only have the Dodgers won back-to-back World Series titles since signing Ohtani, but Ohtani has added to his legacy by winning back-to-back MVP awards. By all indications, he's having the time of his life with the Dodgers, and even if Walter were to sell the team, it isn't a given that he'd want to leave. For all we know, Walter could sell the team to someone who wants to spend even more than Walter has.
It'll be interesting to see where this goes. Again, Walter is unlikely to sell the Dodgers, at least right now, but things can change at a moment's notice. If Walter decides to sell the team at some point, that could very well end Ohtani's Dodgers tenure far sooner than anyone possibly expected.
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