Shohei Ohtani’s recent signing with the Los Angeles Dodgers as a free agent in December 2023 has set a new standard in Major League Baseball, culminating in a monumental 10-year contract worth $700 million. This deal, now the largest in baseball history, could have potentially extended to 15 years, according to Ohtani’s agent, Nez Balelo. Balelo revealed that while they could have negotiated for a longer term, Ohtani preferred to maintain his competitive integrity, aiming to avoid a future where he might not perform at his peak.
The contract is also notable for its unique financial structure, including $680 million in deferred payments, which will see Ohtani earn $68 million annually from 2034 to 2043. This arrangement has allowed the Dodgers not only to secure Ohtani but also to maintain flexibility in their payroll, enabling them to pursue and sign other key players like starters Yoshinobu Yamamoto in 2023 and Blake Snell in 2024.
Despite the contract’s substantial length, Ohtani, who will turn 31 on July 5, has demonstrated no signs of declining performance. In his first season with the Dodgers, he made history by becoming the first player in MLB to hit at least 50 home runs and steal 50 bases in a single season, achieving impressive statistics: 54 home runs, 130 RBIs, 59 stolen bases, and a .310/.390/.646 batting line, alongside contributing to the Dodgers’ World Series victory.
Balelo expressed confidence in their decision-making, stating, “We wouldn’t do anything different. He won a championship. He went to the right team. No regrets.” Ohtani’s ongoing excellence and his business acumen in contract negotiations may serve as a hopeful example for future athletes, advocating for the importance of balancing career longevity with current performance.
This contract not only underlines Ohtani’s importance to the Dodgers but also sets a precedent in the landscape of sports contracts.