Juan Soto has made history by securing the largest contract in professional sports, signing a remarkable 15-year deal worth $765 million with the New York Mets that will extend through 2039.
This unprecedented contract sets a new benchmark for player agreements, particularly because it comes with no deferred payments—contrasting sharply with Shohei Ohtani’s $700 million contract with the Los Angeles Dodgers, which features extensive deferrals. Soto’s contract also includes an opt-out clause after five years, which the Mets can negate by increasing the annual payment by $4 million over the last decade of the deal, potentially raising the total to $805 million.
In various statistics highlighting the importance of this agreement, it’s noteworthy that Soto’s contract exceeds the total expenditures of eight Major League Baseball team owners. Additionally, the length of Soto’s contract surpasses the previous MLB record of 14 years held by Fernando Tatis Jr. of the San Diego Padres.
When looking at annual average value (AAV), Soto ranks 17th among all current contracts in North American sports, earning around $51 million yearly. This figure is on par with Eagles quarterback Jalen Hurts, while other global sports stars, including Lionel Messi and Dak Prescott, lead the pack at $60 million.
Soto’s contract represents a 66% increase over the net present value (NPV) of Ohtani’s agreement, marking a significant shift in the landscape of the sport’s finances. Remarkably, Soto’s deal is so substantial that it eclipses the payrolls of numerous teams.
Further insights reveal Soto’s off-field earnings are projected to be around $3 million in 2024, bolstered by endorsements from notable brands. He previously received a lower offer from the Washington Nationals and an earlier proposition from the New York Yankees, but ultimately chose the Mets, driven in part by owner Steve Cohen’s capacity to invest heavily in talent.
Cohen’s wealth undoubtedly played a pivotal role in Soto’s signing, as he boasts a net worth of $21.3 billion and the highest spending capability in baseball. His acquisition of Soto is seen as a defining moment for the Mets and the sport, possibly reshaping future player contracts considerably.
This moment not only marks a monumental achievement for Soto but also illustrates the changing dynamics within Major League Baseball, signaling a new era of financially lucrative opportunities for talented players. It seems evident that this evolution could encourage young athletes to aspire for similar achievements, inspiring a new generation in the world of sports.