Ohtani - $700 million contract over 10 years

[Half Smoke]

.
that is quite amazing
it's the largest in baseball history by more than $250 million
of course, Uncle Sam will get a gigantic chunk of that and the State will get a huge chunk too
and inflation of the currency explains part of it
still - with good investments over time he could easily become a billionaire
you didn't used to think of ballplayers as being billionaires -

and he has to undergo "Tommy John" surgery on his arm

one report I saw indicated he will not pitch again until 2025 and he will only be a designated hitter in 2024


https://www.espn.com/mlb/story/_/id/...year-700m-deal


.

[PalaceOfFortLarned]

Pure insanity.

A single guy getting paid more than the entire payroll of two other teams.

[Jeff P]

That's within shouting distance of enterprise market value for about 10 of the MLB's 30 Teams.

Sportico | March 14, 2023
2023 MLB Franchise Valuations Ranking:
https://www.sportico.com/feature/mlb...st-1234715821/

The average MLB team is worth $2.36 billion, according to data compiled by Sportico. The New York Yankees rank first at $7.13 billion, while the Miami Marlins rank last at $1.07 billion. Below are the values of the league’s 30 franchises, which are collectively worth more than $70 billion.

-jp
.

[dnlgfnk]

His international marketing value, his work ethic, his clubhouse effect, and his combined hitting/pitching WAR the last 3 yrs., and his determination to pitch again
VS.
the chance that he does not pitch again.

[king kong]

Who is his agent? And what kind of %?

[ElKabong]

When the Rangers signed Alex Rodriguez for 250 million 22 years ago it brought the same reaction. The Rangers went from a team that won the AL West 3 out of 4 years prior, to a basement dwelling club all 3 years of his Rangers tenure even though he was the mvp in one of those seasons. The team had zero resources to go after pitching after dumping cash all over a rod

He wasn't worth the money. Baseball is a team sport with NLT 75% of the value being pitching and defense.
Ohtani won't deliver on either. Chances are he won't be back at that previous level as a pitcher.

If he can deliver some sort of huge gains via a TV deal in Asia (doesn't that come under mlb domain?) Then maybe the Dodgers can regain some of the investment but this was a horrible transaction. He did nothing to make LAA a contender

[PalaceOfFortLarned]

Looked a bit more into Ohtani's contract, and it is quite unique and pushed forth by Ohtani himself.

He wants to win and compete during his playing days with the Dodgers while making significant salary after his playing days so to speak.

https://www.nbcnewyork.com/news/spor...n-mlb/4944587/

What is Shohei Ohtani's new contract with the Dodgers?
On the surface, Ohtani's contract with the Dodgers looks simple: 10 years, $700 million. But there's much more to it.

Ohtani and his agent, in negotiations with the Dodgers, decided to defer the majority of his money to be paid out later on. Here's how his cash will break down over the next 20 years:

2024-2033: $2 million annually (under contract to play for the Dodgers)
2034-2043: $68 million annually (after his contract with the Dodgers expires)
Even though Ohtani will be paid just $2 million each season with the Dodgers, the competitive balance tax (CBT) penalties will be harsher. MLB calculated that his 10-year contract has a present-day value of roughly $460 million. So, for CBT purposes, the Dodgers' payroll hit will be around $46 million each year for Ohtani through 2033.

Why is Shohei Ohtani deferring his contract salary?
The deferrals were Ohtani's idea, according to reports by ESPN, MLB.com and The Athletic.

He prioritized winning throughout his free agency, and that's exactly what this deal should allow him to do. The Dodgers will take a lesser CBT hit, while Ohtani still receives the balance of his contract over a longer period of time.

In the meantime, Ohtani won't be hurting for cash. ESPN reported that Ohtani makes at least $45 million annually through endorsements. So even with a $2 million salary from the Dodgers for the next 10 years, he'll likely still be making close to $50 million or more each year.

[ElKabong]

In other words, in ten years the Dodgers will have the same purchasing power for personnel etc as the As or Indians. That's a big leap of faith by the organization that the economy will remain healthy. If it doesn't to a great degree the Dodgers are hamstrung for the future

Jmo

[Mr_Ed]

I don't discriminate, both he and Draymond Green are worthless clowns.

[Inner Dirt]

Originally Posted by Mr_Ed

I don't discriminate, both he and Draymond Green are worthless clowns.

I only follow baseball during the play-offs, what did Ohtani do to get thrown in with team goon Draymond Green? Or am I confused? Green is a cheap shot artist, and strangely proud of it.

[Half Smoke]

.
the Dodgers will reportedly sign Japanese star pitcher Yoshinobu Yamamoto to a 12 year $325 million contract

he gets great reviews but he's never thrown a single pitch in the MLB

adding this to their contract with Ohtani will push their free agent spending this winter to more than $ ONE BILLION


https://www.espn.co.uk/mlb/story/_/i...rs-sources-say


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[Vince P 777]

I'm a huge Dodger fan from way back (Brooklyn) and I really like Ohtani, a good guy, generous, smart and funny too.

However, I was hoping the Dodgers would not sign him.....until after they did and I saw the details of his contract. Great signing.

But I also feel that Mookie Betts and Freddie Freeman (great defensively too) are every bit as good and more valuable than Ohtani, especially Mookie who can fill in at any position when necessary.

Plus there's no guarantee Ohtani will be the same pitcher as he was, prior to his two surgeries.

On the other hand, I'll be one of his biggest fans.

Vince P

[horsefan2019]

Originally Posted by ElKabong

In other words, in ten years the Dodgers will have the same purchasing power for personnel etc as the As or Indians. That's a big leap of faith by the organization that the economy will remain healthy. If it doesn't to a great degree the Dodgers are hamstrung for the future

Jmo

How does it hamstrung the team if he's bringing in more money than they are paying out? From what I've read all the Dodgers would have to do to pay out his contract is put $44 million into an escrow account each year. He is going to bring in far more money to the club via sponsorships, merchandising and ticket sales. And the Angels example is a poor example. The Angels don't get anywhere the media attention or fandom as the Dodgers. They are both in the same media market, but it seems like everyone in the LA area is a Dodger fan. It was the responsibility of the Angel front office to put out a competitive lineup out there and they did that very poorly during the Mike Trout era. Ohtani saw the writing on the wall when Arte Moreno was willing to let Mike Trout waste his talents away on the Angels while only seeing the playoffs once in his career.

[ElKabong]

Originally Posted by horsefan2019

How does it hamstrung the team if he's bringing in more money than they are paying out? From what I've read all the Dodgers would have to do to pay out his contract is put $44 million into an escrow account each year. He is going to bring in far more money to the club via sponsorships, merchandising and ticket sales. And the Angels example is a poor example. The Angels don't get anywhere the media attention or fandom as the Dodgers. They are both in the same media market, but it seems like everyone in the LA area is a Dodger fan. It was the responsibility of the Angel front office to put out a competitive lineup out there and they did that very poorly during the Mike Trout era. Ohtani saw the writing on the wall when Arte Moreno was willing to let Mike Trout waste his talents away on the Angels while only seeing the playoffs once in his career.

You're assuming he's bringing in 700 million in sponsorships etc? Mkay

There's a fair chance he'll never be the pitcher he was prior. That's called a risk. They're rolling the dice for a reward. Pure gamble at a very stiff price

If it doesn't work they'll have similar issues the Rangers had after signing A Rod to 200 million. Hamstrung to make improvements elsewhere down the road.

[horsefan2019]

Originally Posted by ElKabong

You're assuming he's bringing in 700 million in sponsorships etc? Mkay

There's a fair chance he'll never be the pitcher he was prior. That's called a risk. They're rolling the dice for a reward. Pure gamble at a very stiff price

If it doesn't work they'll have similar issues the Rangers had after signing A Rod to 200 million. Hamstrung to make improvements elsewhere down the road.

He had 40 million/annually in sponsorships when he was playing on the Angels. That is a vastly lower profile team than the Dodgers. Look at Angels stadium it was plastered in Japanese companies advertisements during his time there. I'm sure the Angels got a big cut from those companies. This was when he was doing time playing for a team that was under .500 and never made the playoffs. Now he's playing for a winner, a team that is expected to go to the playoffs and anything less than winning a World Series is seen as a bust.