In times when long-term million-dollar contracts are becoming more frequent, the news surrounding them is not always about how lucrative they are, but about everything they entail and that does not always come to light, at least at the time they are signed. This could be the case of one of the pioneers in signing this type of professional ties in U.S. sports, the Japanese baseball player Shohei Ohtani, whose peculiarities of his contract with the Dodgers have just become known.
The impressive and versatile baseball player, born in Oshu, Iwate, on the island of the Rising Sun, could easily have had a 15-year contract until he reached the age of 44, but he decided not to do so for a commendable reason.
“Ohtani didn’t want to risk a decline”
This was stated last Thursday by his agent Nez Balelo, who explained that the Eastern superstar did not want to risk a decline in his skills during the important contract, although he did sign for a decade with the Los Angeles Dodgers.
Balelo revealed a little of the truth about Ohtani when speaking at Sportico’s Invest West conference, which brought together leaders from the sports, entertainment and finance industries at the new Intuit Dome, home of the NBA’s Los Angeles Clippers.
Ohtani’s contract for 10 years and $700 million with the Los Angeles Dodgers, signed in December 2023, was the largest in professional sports at the time. Ohtani had already won his third Most Valuable Player (MVP) award and his first World Series title in his first season after his stint with the Los Angeles Angels.
A year later,Dominican baseball player Juan Soto would achieve an even higher figure. The left fielder signed a 15-year, $765 million contract with the New York Mets, with no deferred payments.
“We did the right thing by signing with the Dodgers”
“We wouldn’t do anything different. He won a championship. He went to the right team. I have no regrets,” Balelo said. Ohtani’s contract includes $680 million in deferred payments. These deferrals reduce the net present value of the contract to about $461 million for baseball’s luxury tax system, rather than the average of $70 million a year if there had been no deferrals.
Ohtani will be 38 years old when the contract ends after the 2033 season: “We could have gone 13, 14 or 15 years, but Shohei always wanted to maintain the integrity of his playing career. He just didn’t want the end of his dream career to fade away and, in years 13, 14 and 15, just wonder: who is this guy? You can’t even write him off first and he’s not a player anymore,” Balelo said.
Ohtani takes care of his legacy, his ways and his name
Ohtani’s goal was to maintain the competitiveness of his new team, allowing the club to obtain money to sign other players and win championships while remaining a two-way player: “The Dodgers gave us their word that that’s what they were going to do,” Balelo said.
Ohtani is currently MLB’s biggest endorser, and his earnings have increased from $65 million in 2024 to $100 million this year. The Japanese star promotes more than 20 brands carefully selected based on his use or belief in the product and the people who support it, however, his priority is his performance on the field and the necessary training.
“He takes it very seriously and everything else takes a back seat, except for his family. We just have to make sure we don’t overexpose him or put him in a situation where it’s too much of a burden,” Balelo concluded.
*With information from Lapresse
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