Updated Post: Dec. 11 at 6:11 pm ET
More details have emerged regarding the structure of Shohei Ohtani‘s unprecedented ten-year, $700 million contract. According to Fabian Ardaya of The Athletic, Ohtani will defer $68 million a year, for a total of $680 million in deferred money. Ohtani will then earn $2 million a year. However, for CBT purposes, Ohtani’s average annual value is supposedly $46 million. Per Ardaya, the deferred money will be paid without interest between 2034 and 2043.
This will allow the Dodgers to spend money to compete each year. The structure of the contract was Ohtani’s idea. It’s a move never done before with money never seen before.
Original Post: Dec. 9 at 3:27 pm ET
Shohei Ohtani announced on Saturday via his Instagram account that he is signing with the Los Angeles Dodgers. His deal is for 10 years, $700 million, and includes “unprecedented” deferrals, according to Robert Murray of FanSided. The deferrals are aimed at allowing the Dodgers to continue to sport a strong supporting cast around Ohtani and soften some of the luxury tax blow. There are no opt-outs in Ohtani’s deal, per ESPN’s Alden González. The contract is the largest guaranteed contract in the history of North American sports.
Ohtani, arguably the biggest free agent in the history of baseball, had been subject to much media speculation regarding interest from the Toronto Blue Jays and supposed travels from Los Angeles to Toronto.
Kiyoshi Mio-USA TODAY Sports
Ohtani, a two-time former MVP and 2018 American League Rookie of the Year spent the first six years of his career with the Angels. In just six years, Ohtani has already totaled 171 homers, owns a career OPS of .922, a career ERA of 3.01, and a K/9 of 11.4. Ohtani is the single-most unprecedented player in baseball, and his free agency was one of the most anticipated in sports history.
Ohtani’s pitching is under some question, however. The Angels announced on August 23rd that the superstar pitcher had a torn UCL, marking the end of his 2023 campaign. Ohtani has already undergone Tommy John surgery once in 2018 and missed all of 2019 on the mound. The Angels did not decide on a possible Tommy John, but one would figure that any sort of decision was discussed with Ohtani before the signing of this contract.
Ohtani joins an already-loaded Dodgers roster, including the likes of Freddie Freeman, Mookie Betts, Walker Buehler, and Will Smith. The Dodgers, already a perennial World Series favorite, figure to only grow their odds. Ohtani’s $700 million is the largest guaranteed contract in the history of professional sports.
