The Los Angeles Dodgers have officially secured the services of two-time MVP and baseball unicorn Shohei Ohtani, announcing a groundbreaking 10-year contract worth an astonishing $700 million. The two-way superstar revealed his decision to join the Dodgers through a statement on his Instagram page last Saturday.
In a statement released by the team, Ohtani expressed his gratitude to Dodger fans and conveyed a shared goal with the organization—to bring World Series parades to the streets of Los Angeles.
While the financial terms of the deal are eye-popping, what sets Ohtani’s contract apart is its unique structure. CAA agent Nez Balelo revealed that Ohtani proposed the concept of deferrals himself. The deal sees Ohtani collecting only $2 million of his annual salaries over the next decade, with the remaining $680 million deferred and set to be paid out between 2034-2043. This deferral strategy effectively reduces the contract’s competitive balance tax number / “luxury tax” to around $46 million.
Ohtani’s $700 million guarantee eclipses the previous record held by soccer legend Lionel Messi’s $674 million deal with FC Barcelona for the 2017-21 La Liga seasons.
In a heartfelt Instagram message, Ohtani expressed gratitude to the Angels organization and fans for the six years he spent with the team. He reassured Dodgers fans of his commitment to doing what’s best for the team and pledged to strive forward for both the Dodgers and the baseball world until the end of his playing career.
Balelo, in his statement, emphasized Ohtani’s excitement to be part of the Dodgers organization and highlighted the commitment from both sides to long-term success.
The deal not only solidifies Ohtani’s status as one of baseball’s generational talents but also reflects the Dodgers’ determination to secure a player who has been on their radar for years.
Ohtani’s journey to the Dodgers has been marked by his remarkable performance since joining MLB in 2017-18. His impact was immediate, winning the AL Rookie of the Year in 2018. Despite facing challenges, including Tommy John surgery in 2019 and an injury-marred 2020, Ohtani bounced back in spectacular fashion from 2021-23. His unprecedented accomplishments, both as a pitcher and hitter, earned him the unofficial nickname of “the Unicorn.”
However, concerns about Ohtani’s health have arisen as he underwent surgery for a UCL tear in September 2023. While he is expected to miss the 2024 season as a pitcher, Ohtani’s prowess as a designated hitter remains intact.
The Dodgers, eager to address their pitching needs, face challenges with Ohtani’s absence on the mound. Key players like Walker Buehler and Clayton Kershaw are dealing with their own recovery processes.
Ohtani’s arrival marks a turning point for the Dodgers, who have been consistent playoff contenders but have secured only one World Series title in their impressive run of success. The addition of Ohtani not only strengthens their on-field prowess but also enhances their global brand, bringing unprecedented economic benefits through marketing, merchandising, and broadcasting revenues.
As the Dodgers embark on the Ohtani era, fans eagerly anticipate whether this acquisition will translate into more championship rings and elevate the team to even greater heights in the world of baseball.
