Shohei Otani's Game-Changing US$700M Over 10 Years- Baseball Contract & How It's Structured

Picture Source: MLB Baseball

Published by Zila Mbekela

At the beginning of the Major League Baseball (MLB) Season, the baseball fraternity witnessed an in-form Shohei Otani dominate his opponents as a two-way player. His pitching and batting were simply in a class of their own. Nobody could tell this man anything and it just seemed as if his perfomance kept elevating on a weekly basis. He further stamped his authority in 2023, by leading the Japan National Baseball team to an epic victory against a highly favored US team, in the World Baseball Classic. From then on, it became clear that this guy is truly a special talent.

When a player displays that amount of eliticism, the big question surrounding his player market value started to surface. Many ESPN and various sports media outlets began speculating on what teams would be offering Otani when his contract was up with the Los Angeles Angels. The numbers thrown around regaularly were between US$500 million-US$600 million. Many predicted that the Angels would do their best to secure the player's services for another few seasons, however, it wasn't meant to be that way. Last weekend, on December 9th (Dec 10th in Japan), an announcement was made that completely shook the USA sporting industry. It was confirmed that Shoei Otani would be remaining in LA, but with a different team. The famous Los Angeles Dodgers, partly owned by Earvin Magic Johnson, made a power move by offering the Japanese superstar a jaw-dropping US$700 million contract. According to Japantoday.com the contract is valid for ten years and that surprisingly, 97% of the contract will be fully paid in 2033. This is the way that Otani agreed to structure it. He did it this way to lower the Dodgers luxury tax that they will have to pay for signing him for the record-breaking amount. He has also agreed to be paid an annual playing salary of US$2 million for the ten year duration of his contract. The humble nature of Japanese athletes is something to really admire because the majority of athletes want the lumpsum paid now! And rightly so, as they have earned it. He is also fortunate in the sense that he makes a decent amount of money through his endorsement deals and brand partnerships with US as well as Japanese brands.

He is somewhat of a celebrity here in Japan and believe me when I tell you- that every where you go, there are massive billboards with his face on them. When riding the Odakyu Line Train, there are brand advertisements with his face, on display. He also recently released his documentary detailing his journey from playing in Japan, to playing in the MLB. It's been doing very well so far and can be streamed on Disney + . He is definitely not going hurt for money for the next ten years and based on his work ethic, he is sure to bag that whole 97% remainder of his contract with no issues at all. He will be regarded as one of the greatest Dodger players of all time. It's also no surprise that with all the records he has broken thus far in the League, he'll be one of the greatest two-way players in MLB history!

Sources:

Japantoday.com