It’s only fitting that the MLB’s most unique player would sign one of the most unique contracts in modern baseball history.
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Shohei Ohtani’s record-breaking 10-year $700 million deal is worth more than the GDP of 12 countries, while his yearly salary would be worth more than the entire payroll of the Oakland Athletics or the Pittsburgh Pirates.
But, there’s so much more to this eye-watering sum than meets the eye. Through deferred payments and smart investments, let’s take a look at how the Dodgers might make money on the MLB’s largest-ever contract.
Elbow surgery might stop him from pitching this season, but Ohtani is still set to be one of the game’s best hitters. If we take a look at some of the best MLB prop bets, we’ll see that Ohtani is among the favorites to lead the league in home runs and take home the NL MVP award.
In most cases, signing a player to such a massive contract would be a serious dent in any team’s budget, even one with coffers as deep as the Dodgers. But, in a move that might pay off handsomely for both sides, the short-term price of this mammoth deal is actually relatively low.
Of the $700 million owed to Ohtani over the next decade, a whopping $680 million will be deferred until the contract is complete. This is great for the Dodgers, who can (and already have) used this money to sign more stars, including fellow Japanese ace Yoshinobu Yamamoto, but why would Shohei say yes to getting only $2 million per year up front?
Well, a lot of it comes down to winning. Ohanti spent the first six seasons of his MLB career on a very top-heavy Angels team that never had the depth required to make a serious playoff push despite the team’s insane star power.
By signing a deferred deal with the Dodgers, the 2022 and 2023 AL MVP is not only joining one of the league’s best teams but also a team that has proven time and time again that they’ll do whatever it takes to build elite rosters.
From a financial standpoint, it isn’t so bad of an idea for Ohtani either. As an international superstar with tens of millions of adoring Japanese fans, the former Nippon Ham Fighter will be raking in tens of millions each year from endorsement deals and sponsorships alone.
By deferring this contract, Ohtani is extending his period of peak earning potential well past the end of his actual career, as the Dodgers will be paying him $68 million per year until 2043 when he will be 49.
And these payment deferrals might net the Dodgers a pretty penny as well. Not only will Shohei Ohtani‘s massive fanbase bring in tons of added revenue, but the team could make even more money by investing the $680 million in deferred payments, potentially even doubling its value.
Overall, this deal seems to be a masterstroke both on the field and in the bank account for both sides and could set a new precedent for long-term superstar deals.