Shohei Ohtani, the Japanese baseball superstar known for his incredible skills both as a pitcher and a hitter, has made headlines again in 2024. This time, it’s for his record-breaking $700 million contract with the Los Angeles Dodgers, making it the largest deal in Major League Baseball (MLB) history. Fans and analysts alike are eager to see how this contract will shape the future of the sport and Ohtani’s career.
The contract is structured in a unique way, with a large portion of the money being deferred. While Ohtani is set to earn an annual salary of $70 million, he will only receive $2 million per year during the first ten years of the contract. The remaining $680 million will be paid out over a span of nine years after the initial decade.
Key Takeaways
- Shohei Ohtani has signed a $700 million, 10-year contract with the Los Angeles Dodgers.
- Only $2 million will be paid annually during the first 10 years; the remaining $680 million will be deferred and paid between 2034 and 2043.
- The contract is fully guaranteed, meaning Ohtani is assured of receiving all $700 million.
- This historic deal highlights Ohtani’s continued dominance in both pitching and hitting, setting new benchmarks for MLB contracts.
What is Shohei Ohtani’s Contract?
Shohei Ohtani’s new contract with the Dodgers is not just about the numbers—it represents a groundbreaking moment in sports history. Valued at $700 million over ten years, this contract is a statement of his worth as a two-way player, excelling both as a hitter and a pitcher.
The contract’s most striking feature is its deferred structure. Although the total amount is $700 million, Ohtani will only receive $2 million annually for the first decade. The remaining $680 million will be paid out over nine years, from 2034 through 2043, allowing the Dodgers to spread the financial burden over a longer period.
Ohtani’s Contract Breakdown
Ohtani’s deal includes several unique features that make it stand out in the sports world. The full breakdown is as follows:
- Guaranteed Money: The entire $700 million is guaranteed, meaning Ohtani will receive this amount even if injuries or other factors come into play.
- Deferred Payments: A total of $680 million will be paid after the first ten years, from 2034 to 2043, at $68 million per year.
- Annual Salary During First Decade: Ohtani will earn just $2 million per year from 2024 to 2034.
- Contract Notes: The deal includes a full No Trade Clause, meaning Ohtani cannot be traded without his consent.
This contract structure allows the Dodgers to manage their payroll more efficiently while ensuring that Ohtani will continue to be compensated well into his retirement years. Additionally, the deferrals help the team stay under luxury tax thresholds in the short term.
How Much is Shohei Ohtani’s Contract Worth?
Shohei Ohtani’s contract is valued at $700 million, making it the largest in MLB history. This deal surpasses previous record-setting contracts in terms of both guaranteed money and total value. However, due to the deferred payment plan, the present-day value of the contract is estimated to be around $460 million when considering inflation and the time value of money.
| Key Contract Details | Breakdown |
|---|---|
| Total Contract Value | $700 million |
| Duration | 10 years (2024-2033) |
| Annual Salary (First 10 Years) | $2 million |
| Deferred Payments | $680 million (2034-2043) |
| Guaranteed Money | $700 million |
| Present-Day Value | Approx. $460 million |
| Team | Los Angeles Dodgers |
| Agent | Nez Balelo (CAA Sports) |
| Notable Clause | Full No Trade Clause |
The Dodgers and Ohtani – A Perfect Fit?
Shohei Ohtani’s move to the Dodgers solidifies the team’s position as a dominant force in MLB. By signing Ohtani, they’ve added a player who can significantly impact both offense and defense. The Dodgers have made it clear that they are investing not only in his talent but also in the future of the franchise, as Ohtani has expressed his desire to continue playing well into his late thirties.
The structure of this contract also benefits the Dodgers financially. By deferring the majority of Ohtani’s compensation, the team has more flexibility to sign additional players while staying competitive in the short term.
Shohei Ohtani Contract and its Impact on MLB
Ohtani’s unprecedented contract is likely to set a new benchmark for future MLB deals. It could inspire other teams to adopt similar deferred payment strategies for high-profile players, allowing them to stay competitive while managing payroll challenges.
Moreover, this contract reflects how Ohtani’s status as a dual-threat player has redefined the value of athletes in baseball. It’s not just about hitting or pitching—Ohtani excels at both, making him one of the most valuable players in the game today.
FAQ
What is Shohei Ohtani’s contract worth?
Shohei Ohtani’s contract with the Dodgers is worth $700 million over 10 years, making it the largest in MLB history.
How much does Ohtani earn annually?
Ohtani will earn $2 million annually during the first decade of his contract. After that, he will receive deferred payments of $68 million per year from 2034 to 2043.
Is Shohei Ohtani’s contract guaranteed?
Yes, Ohtani’s entire $700 million contract is guaranteed, meaning he will receive the full amount regardless of performance or injuries.
What makes Ohtani’s contract unique?
The contract’s deferred payment structure is highly unusual. While Ohtani earns a modest salary during the first ten years, the majority of his compensation will be paid after the initial decade.
Why did Shohei Ohtani choose the Dodgers?
Ohtani chose the Dodgers for their competitive history and commitment to building a strong team. The Dodgers’ ability to offer a flexible contract structure likely also played a role in his decision.
How does Ohtani’s contract affect the Dodgers’ payroll?
By deferring a large portion of Ohtani’s contract, the Dodgers can manage their payroll more efficiently and stay competitive while avoiding luxury tax penalties.