On a sunny December day in Los Angeles, Shohei Ohtani stepped onto the podium at his press conference, dressed in a blue suit and blue tie, looking like a graduate of an elite US university. But the friendly eyes of the 29-year-old Japanese star met not proud relatives, but reporters, photographers, and over 30 camera crews, many of whom had traveled from abroad. Why the commotion? Ohtani is not only the best baseball player on the planet—he is also the first athlete in history to sign a contract worth $700 million (€632.63 million), with the Los Angeles Dodgers. This milestone reshapes the landscape of professional sports, leaving mega-stars like Lionel Messi, Cristiano Ronaldo, Kylian Mbappé, NFL quarterback Patrick Mahomes, NBA legend LeBron James, and golfer Jon Rahm (newcomer to the Saudi LIV Tour) in the dust.

The Best of All Time?

The fact that Ohtani—virtually unknown in Europe, Africa, and many other parts of the world—secured such a mega-deal has multiple explanations. The most important is simple: Ohtani is the finest baseball player of his era. “Shohei is arguably the most talented baseball player ever to play the game,” said Andrew Friedman, President of Baseball Operations for the Dodgers, during Ohtani’s introduction. Friedman is naturally biased—he made the contract possible—but Ohtani is also objectively the most valuable professional in Major League Baseball (MLB). He excels not only at hitting but also at pitching, playing both offense and defense from the crucial pitcher position, and he does both at an elite level.

Ohtani’s two-way ability is unprecedented in modern baseball. While players like Babe Ruth were dominant hitters and occasional pitchers in the early 20th century, no one in the modern era has combined star-level pitching with star-level hitting for an extended period. Ohtani has won two American League Most Valuable Player (MVP) awards (2021 and 2023) and was a unanimous selection in 2023. His 2023 season included a .304 batting average, 44 home runs, 95 RBIs, and a 3.14 ERA with 167 strikeouts as a pitcher—a feat not seen since the days of Ruth and others over a century ago.

The Contract: A Deferred Masterstroke

The Dodgers had attempted to sign Ohtani straight out of high school, but he chose to begin his MLB career with the Los Angeles Angels. After six seasons in Anaheim, during which he secured two MVP awards and became the most sought-after free agent in MLB history, the Dodgers knew they had to make an unprecedented offer. For context, in December 2000, the Texas Rangers signed Alex Rodriguez to a 10-year, $252 million contract, then a record. Ohtani’s $700 million over 10 years shatters that figure.

However, the structure of the deal is what sets it apart. Ohtani will not receive the bulk of his salary during the playing years. Instead, the contract stipulates that he will be paid $68 million annually from 2034 to 2043—that is, deferred payments start a decade after the contract ends. This arrangement benefits both sides. The Dodgers can manage their luxury tax obligations more effectively and immediately capitalize on Ohtani’s immense marketing potential, especially among Japanese corporations. In Japan, Ohtani is as famous as LeBron James is in the US or Kylian Mbappé in France. According to US media reports, Ohtani currently earns $50 million annually from sponsorship deals alone, so he does not need the Dodgers salary for day-to-day living. By deferring the salary, he ensures a steady income stream long after his playing days are over, while the Dodgers gain financial flexibility to build a championship team around him.

Global Impact and Marketing Power

Ohtani’s marketability extends far beyond the baseball diamond. His humble demeanor, work ethic, and bilingual ability (he speaks Japanese and English) appeal to a broad audience. Japanese companies like Toyota, Seiko, and Mizuno have lined up to sponsor him, and his Dodgers jersey became the best-selling MLB jersey within days of the announcement. The Dodgers, already a global brand, now have a direct pipeline to the lucrative Asian market. The deferred salary structure allows them to invest more heavily in other players, ensuring a competitive roster for years to come.

Comparisons with other sports superstars are inevitable. Lionel Messi’s latest contract with Inter Miami (including equity in the club) is reportedly worth $50-60 million annually. Cristiano Ronaldo’s deal with Al-Nassr in Saudi Arabia is valued at around $200 million per year, but that includes lucrative commercial rights and is not purely salary. Kylian Mbappé’s recent contract extension with Paris Saint-Germain, though reportedly worth $630 million over three years, fell short of Ohtani’s total guaranteed value. Even LeBron James, who has earned over $1 billion in his career through salaries and endorsements, never signed a single contract worth $700 million. Ohtani’s deal is not just about the number—it reflects the unique combination of his rare talent, the global reach of baseball, and the smart financial engineering that makes it work.

Challenges and Expectations

With such a massive contract come enormous expectations. Ohtani will be under pressure to lead the Dodgers to multiple World Series titles—the franchise’s last championship was in 2020, and they have lost in the playoffs in recent years. Moreover, Ohtani is recovering from a torn UCL that required Tommy John surgery, sidelining him as a pitcher for the 2024 season. He will serve primarily as a designated hitter in 2024, with hopes to return to the mound in 2025. The Dodgers are betting on a full recovery, and Ohtani’s age (he will be 30 at the start of the 2024 season) still gives him several prime years ahead.

Beyond winning, Ohtani carries the weight of representing Japanese baseball on the global stage. His success has already inspired a new generation of Japanese players to pursue MLB careers, and his influence extends to the growth of baseball in Asia and beyond. The Dodgers’ investment is not just in one player—it is in the entire baseball ecosystem.

Historical Context

To understand the magnitude of Ohtani’s contract, one must look at the history of sports deals. The first $1 million contract in baseball was signed by Mike Schmidt in 1983. By 2001, Alex Rodriguez set the $250 million barrier. In 2018, Manny Machado signed a $300 million contract, and later Bryce Harper signed for $330 million. Ohtani’s $700 million is nearly double that, and it includes the deferred payment structure that ensures long-term financial security. No other sport has seen a contract of this magnitude for a single player—NFL quarterback Patrick Mahomes’ $450 million extension is the nearest competitor, but it is spread over 10 years and includes option years that reduce the guaranteed amount.

The deferred salary model is not new—teams like the Boston Red Sox have used it for players like Manny Ramirez—but never to this scale. It allows the Dodgers to effectively pay Ohtani out of future revenue streams, while Ohtani benefits from tax advantages and guaranteed income after retirement. This innovative approach could set a precedent for future mega-contracts across sports.

In Europe, where soccer dominates, players rarely sign contracts exceeding €500 million, but those deals often include image rights, bonuses, and transfer fees. Ohtani’s deal is pure guaranteed salary, making it the most valuable in terms of base compensation in sports history. The Dodgers are not just paying for performance; they are paying for a cultural phenomenon that transcends the game itself.

Source: Die Presse News