Shohei Ohtani contract details: How the Dodgers were able to pull off historic signing
The Los Angeles Dodgers have landed the offseason's crown jewel.
Shohei Ohtani announced his intention to sign with the Dodgers on Instagram, cutting out the middle man and thanking the Los Angeles Angels for six years of commitment. This deal allows Ohtani to stay in Los Angeles while joining a top-tier contender. That's why the Dodgers were always the favorite.
The contract amounts to $700 million across 10 years, per ESPN's Jeff Passan. That is the largest deal in sports history, surpassing the $647 million contract Lionel Messi signed with Barcelona.
Wow. Shohei Ohtani's reported deal with the Dodgers would be the largest in sports history, topping the $674 million Lionel Messi got from Barcelona. https://t.co/UQaqo8hzMe
— Rob Tornoe (@RobTornoe) December 9, 2023
More interesting is the structure of Ohtani's contract. There are no opt-outs, according to ESPN's Alden González. The 29-year-old takes a page from Bryce Harper's book with the Philadelphia Phillies, bucking the common MLB superstar trend of negotiating opt-outs a few years into a major long-term agreement. At $70 million annually, however, Ohtani probably can't expect to beat his current number ever again.
There are no opt-outs in Shohei Ohtani's deal.
— Alden González (@Alden_Gonzalez) December 9, 2023
The Dodgers can therefore rest assured that Ohtani is there for the long haul. At least a decade, unless the franchise does the unthinkable. In addition to the length of Ohtani's 100 percent guaranteed contract, the Dodgers were creative with the structure — apparently at Ohtani's behest.
Significant deferrals are built into the contract, which will allow the Dodgers to evade the maximum competitive-balance-tax hit and build a better team around Ohtani.
Ohtani’s deal with the Dodgers includes “unprecedented deferrals” - the majority of his salary - which was his idea, according to a source. He wanted the team to have flexibility to be as competitive as possible. It’s believed to be the largest contract in sports history.
— Robert Murray (@ByRobertMurray) December 9, 2023
The Dodgers also have Mookie Betts ($365 million) and Freddie Freeman ($162 million) on massive deals, so saving money on the margins and preserving financial flexibility is essential.
Shohei Ohtani agent Nez Balelo’s statement pic.twitter.com/GauXEpXjQM
— Bob Nightengale (@BNightengale) December 9, 2023
Shohei Ohtani signs record-breaking contract with Dodgers
The merits of paying a baseball player $700 million will be debated ad nauseam, but the Dodgers can afford it. Such is the benefit of playing in a big market, with invested ownership. The Dodgers will make their money back due to the inherent marketability of Ohtani around the world. He's a one-man revenue stream. Los Angeles will also be able to put a credible roster around Ohtani because ownership is willing to pay the extra tax.
It's natural to feel a bit bummed about Ohtani joining the superteam instead of boosting a smaller market like Toronto, but this was always inevitable. Ohtani has been too comfortable in Los Angeles and too annoyed with losing for any other outcome to truly make sense. Especially with the Dodgers willing to bid so high financially.
Ohtani appeared in 135 games last season, slashing .304/.412/.654 with 44 home runs and 95 RBIs in 497 ABs. He started 23 games on the mound with a 10-5 record, posting a 3.14 ERA and 1.061 WHIP with 167 strikeouts in 132.0 innings pitched.
The expectation is that Ohtani won't pitch again until 2025 after undergoing his second Tommy John surgery, but his bat alone should considerably increase the Dodgers' competitive floor and ceiling. He will occupy the DH spot, which all but insures that J.D. Martinez will not return.
Barring any unexpected shake-ups, the Dodgers will probably open games with a 1-2-3 lineup of Betts, Freeman, and Ohtani. Good luck to opposing pitching staffs.
feed