Juan Soto has secured the largest contract in professional sports history with the New York Mets, signing a staggering 15-year deal valued at $765 million, which will extend through 2039. This groundbreaking agreement marks a significant milestone in baseball contracts and sets a new benchmark for player earnings.
One noteworthy aspect of Soto’s contract is that it includes no deferred payments, which stands in contrast to Shohei Ohtani’s $700 million agreement with the Los Angeles Dodgers, where a considerable portion of the money is deferred. Furthermore, Soto has the option to opt out of the contract after five years, a provision that could potentially raise the total value to $805 million if the Mets decide to void this opt-out by adding an additional $4 million annually for the last decade of the deal. This adjustment would elevate the average annual value (AAV) to approximately $53.66 million.
In terms of historical context, Soto’s contract eclipses the previous longest tenure for a baseball deal, which was 14 years for Fernando Tatis Jr. with the San Diego Padres. Comparatively, other major sports leagues have shorter maximum contract terms, with the NHL having allowed 15-year contracts, the NFL capped at 10 years, and the NBA at five.
Soto’s earnings position him as a top figure in North American sports, with an average of $51 million annually, tying him with Philadelphia Eagles quarterback Jalen Hurts, while he lags behind soccer superstar Lionel Messi and Dak Prescott of the Dallas Cowboys, who currently average $60 million. Notably, Soto’s contract is fully guaranteed, which is a significant advantage over many players in other leagues where funds are not guaranteed.
Soto’s contract signifies a remarkable leap in value compared to other recent deals, providing an increase of 66% over Ohtani’s agreement. However, this deal is still shy of the historical record set by Alex Rodriguez in 2000, with his $252 million contract having doubled the previous high at that time.
The economic landscape of Major League Baseball has evolved rapidly, with franchises now valued considerably higher than during earlier eras. The current least valuable team, the Miami Marlins, is estimated at $1.2 billion, reflecting the growing financial power of the sport. Soto is also anticipated to earn approximately $3 million off the field through sponsorships in 2024.
Mets owner Steve Cohen, possessing a net worth of $21.3 billion, plays a critical role in this unprecedented deal. His fortune has raised eyebrows among other team owners, spurring changes to salary structures, including the implementation of the “Cohen Tax” due to his willingness to exceed luxury tax thresholds significantly. This willingness allowed the Mets to adopt a payroll strategy that stands out in the league.
In conclusion, Juan Soto’s historic contract illustrates not only the personal achievements of a remarkable athlete but also the broader changes within the sport’s financial landscape, making it a hopeful and exciting time for MLB. This agreement exemplifies how ambitious and competitive the league has become in attracting top talent, setting the stage for future negotiations and contracts.