Juan Soto has made headlines with an unprecedented 15-year, $765 million contract with the New York Mets, marking the most significant agreement in professional sports history. This deal runs through 2039, setting a new standard for baseball contracts. Soto, who is only 26 years old, along with his agent Scott Boras, has negotiated terms that significantly differ from other recent contracts, specifically Shohei Ohtani’s $700 million deal with the Los Angeles Dodgers, which has a substantial portion deferred.
Soto’s contract stands out because it features no deferred payments and allows him to opt-out after five years. If the Mets wish to void this opt-out clause, they can do so by increasing Soto’s annual salary by $4 million over the last ten years of the contract, raising its total value to $805 million with an average annual value (AAV) of around $53.66 million.
To put this historic agreement into perspective, there are only eight MLB team owners whose franchises were purchased for more than the contract’s total amount. Steve Cohen purchased the Mets for a record-setting $2.42 billion in 2020. The length of Soto’s contract surpasses the previous MLB record of 14 years held by Fernando Tatis Jr.
Soto’s AAV ranks him among the highest earners in North American sports, comparable to Philadelphia Eagles quarterback Jalen Hurts. It also highlights the financial landscape of sports contracts, where Soto’s agreement is completely guaranteed, unlike many others where substantial amounts may be deferred or contingent on performance metrics.
Comparing Soto’s contract to those in other sports, while it is currently lower than contracts signed by soccer stars like Cristiano Ronaldo and Kylian Mbappé, it remains a historical achievement within Major League Baseball. It marks a 66% increase in value compared to Ohtani’s contract and is reminiscent of Alex Rodriguez’s landmark $252 million deal in 2000, which reshaped how contracts are structured in sports.
Off the field, Soto is also projected to earn an estimated $3 million in sponsorship deals in 2024, ranking him as one of the higher earners in baseball from endorsements.
Cohen’s financial prowess as the richest owner in baseball undoubtedly influenced Soto’s contract negotiation. His willingness to invest substantially into player acquisitions has raised concerns among other owners about the sustainability of the salary structure. The introduction of the luxury tax tier aimed at Cohen reflects the shifting economic tide within Major League Baseball.
This monumental contract not only secures Soto’s future but further energizes the franchise and its fanbase, hinting at a brighter competitive outlook for the Mets in the years to come. Soto’s agreement could also inspire other teams to rethink their spending strategies and long-term player contracts as salaries in baseball continue to climb to new heights.