Shohei Ohtani signs with the Dodgers for 10 years, $700 million

[bcla]

There was some earlier talk about Ohtani's people saying that leaks would be a negative in terms of him signing, and the manager of the Dodgers made a comment about hosting him. Some thought that might have been a complete disqualifier, although the Dodgers might have been the leader in terms of competitiveness.

https://www.espn.com/mlb/story/_/id/39076745/shohei-ohtani-join-dodgers-10-year-700m-deal
https://www.latimes.com/sports/dodgers/story/2023-12-09/shohei-ohtani-dodgers-agreement-angels

 

[disneyfan123]

Super disappointed he didn't sign with the Jays. Yesterday it seemed like he was signing with them, today it's a super gut-punch for us fans! And I just bought tickets to game (which for me, involves a flight and hotel, as I live about 20 hrs or so from Toronto...), betting he was signing with the Jays! Oh well, off to Stub Hub I go!

 

[LuvOrlando]

Whoa, no idea who is this or anything but still that is an impressive advance payment regardless.

 

[bcla]

Whoa, no idea who is this or anything but still that is an impressive advance payment regardless.

A lot of it was reportedly back-loaded. Possibly after the end of the playing requirements.

There’s the notorious amount that the Mets paid to Bobby Bonilla every year as a condition of their settlement to release him in 1999. He’s getting paid $1.19 million a year from 2011 to 2035.

 

[Lord Manhammer]

At least now he can afford to buy a house in Los Angeles...

 

[HokieRaven5]

A lot of it was reportedly back-loaded. Possibly after the end of the playing requirements.

There’s the notorious amount that the Mets paid to Bobby Bonilla every year as a condition of their settlement to release him in 1999. He’s getting paid $1.19 million a year from 2011 to 2035.

Bobby Bonilla Day is one of my favorite sports holidays!

To be guaranteed $700M dollars in salary is incredible.

 

[Pea-n-Me]

We were just talking about this at dinner. DS has been following it.

 

[Allison Joy]

As a Cardinals fan, I was admittedly hoping he'd say in the AL... Ha!

 

[Cannot_Wait_4Disney]

The Dodgers have been the best team in baseball for at least a decade.... And they have but one title to show for it.

Choking in the playoffs isn't a disease. But it sure spreads through the Dodger's clubhouse like one.

 

[SpaceMan5]

Bobby Bonilla Day is one of my favorite sports holidays!

LOL, Same here. I love seeing it pop up in my news feed every year

 

[Dznypal]

Sorry no one is worth any where near that kind of money

 

[SpaceMan5]

Sorry no one is worth any where near that kind of money

So true but this is what professional sports have become

 

[Maistre Gracey]

Risky imo. Second Tommy John…
Who really knows the future of pitching longevity??

 

[kymom99]

Ken Griffey jr gets paid $3.59 million a year by the reds, and he hasn’t played for them since 2008. I believe 2024 is the last year.

 

[GreatLakes]

Sorry no one is worth any where near that kind of money

If someone is willing to pay it then they are worth it. Simple as that.

He is, without a doubt, a unique baseball player and I had no doubt he would sign the biggest MLB contract though the length does surprise me a bit.

Something that is often forgotten when we discuss these big professional contracts is that it isn't only what is happening on the field that impacts the worth. Setting aside the uniqueness of someone who can hit and pitch at an all-star level the fact he is Japanese plays into his worth a lot.
Unlike here where baseball, while still very popular, is not known for the high marketability of its players in Japan they are still some of the biggest stars.

 

[HokieRaven5]

So he gets $20M total for 10 years, and then has $680M in deferred money over the following 10 years.

So the Dodgers can keep on spending for the 10 years he’s on the team without being a detriment to the luxury tax until he’s possibly retired?

Added attaboy for Shohei though, avoids the a lot of the tax burden until the second 10 years and how much he’s taxed would hinge on where he lives.

 

[dvcgirl67]

Added attaboy for Shohei though, avoids the a lot of the tax burden until the second 10 years and how much he’s taxed would hinge on where he lives.

Good point, but this deal is actually worth far less than it appears as there’s no inflation escalator. The 68 million that he’ll receive is effectively 50 million dollars in today’s dollars when he gets that first payment in 2033…..and his spending power will continue to drop during the ten years he’s paid. And that’s using a 3% inflation number…..and we’ve all learned recently that’s not always the case. Still….i don’t feel badly for the guy…it’s just not as lucrative as it appears at first glance.

 

[HokieRaven5]

Good point, but this deal is actually worth far less than it appears as there’s no inflation escalator. The 68 million that he’ll receive is effectively 50 million dollars in today’s dollars when he gets that first payment in 2033…..and his spending power will continue to drop during the ten years he’s paid. And that’s using a 3% inflation number…..and we’ve all learned recently that’s not always the case. Still….i don’t feel badly for the guy…it’s just not as lucrative as it appears at first glance.

He also currently makes around $50M a year in off the field revenue from endorsements.

 

[dvcgirl67]

He also currently makes around $50M a year in off the field revenue from endorsements.

Oh, I’m sure he’s not hurting for money. Just pointing out that 680 million paid out over ten years….beginning ten years from now is considerably less than it would today. Another thing to consider is that taxes may indeed be considerably higher for him personally ten years from now.

 

[EACarlson]

Added attaboy for Shohei though, avoids the a lot of the tax burden until the second 10 years and how much he’s taxed would hinge on where he lives.

For the years he's playing, where he lives doesn't really matter all that much, it's prorated based on where he plays. When the Dodgers play in Miami, he won't pay any state tax, when they play in Chicago he'll have to pay the IL state income tax on that portion. Taxes and exchange rate hurt the Jays I'm sure. Even as onerous as CA taxes are, they pale in comparison to Canadian taxes. I have no idea how the after retirement payments would be handled.