Getty Image
The Shohei Ohtani free agency saga is finally over.
Ohtani announced on Instagram that he’s agreed to a contract with the Los Angeles Dodgers on Saturday afternoon.
“To all the fans and everyone involved in the baseball world, I apologize for taking so long to come to a decision.,I have decided to choose the Dodgers as my next team,” Ohtani wrote.
“…To all Dodgers fans, I pledge to always do what’s best for the team and always continue to give it my all to be the best version of myself. Until the last day of my playing career, I want to continue to strive forward not only for the Dodgers but for the baseball world,” Ohtani continued.
But that’s just part of the story.
As expected, Ohtani’s deal is the largest in Major League Baseball history. And it’s not even close.
Ohtani’s deal is for 10 years and $700 million. Here’s a statement from his agent, Nez Balelo of CAA: pic.twitter.com/0UabcPAC7N
— Mark Feinsand (@Feinsand) December 9, 2023
Ohtani agreed to a 10-year, $700 million deal with the Dodgers according to Mark Feinsand of MLB Network.
That’s $70 million a year. Or, in other terms, nearly double the $35.5 million per year that Mike Trout signed for with the Los Angeles Angels in 2019.
It also dwarfs the $40 million (9 years, $360 million) per year that the New York Yankees agreed to pay Aaron Judge just one year ago.
To put things in perspective, Ohtani will make $700 million over 10 years, $70 million per year, $191,780 per day, $7,990 per hour. $133 per minute and a measly $2.21 a second.
Ohtani’s $70M average annual value is eight million more than the Oakland A’s entire payroll in 2023. It’s one million more than the Orioles, five million more than the Pirates and nine million more than the Rays.
That’s a lot of money!
So, how will the Dodgers pay for Ohtani and still remain competitive?
Well, there’s a catch.
Shohei Ohtani's contract has significant deferrals that include most of his salary — an idea, a source said, that was Ohtani's. In deferring the money, it reduces the cost of the competitive-balance-tax hit and will allow the Dodgers to build a better team around him.
— Jeff Passan (@JeffPassan) December 9, 2023
ESPN’s Jeff Passan reports that Ohtani’s deal has “significant deferrals that include most of his salary.” That means that Ohtani will be collecting checks for a long time after he’s done actually playing for Los Angeles.
It also means that the Dodgers can duck the MLB competitive balance tax to some degree, allowing them to spend money in the immediate future to try and build a championship contender around Ohtani.
Whether it works remains to seen.
But the baseball world finally has the answer to the offseason’s biggest question.