The Los Angeles Dodgers surprised the baseball world with the signing of Shohei Ohtani to a 10-year, $700 million deal in December. The most unexpected part of the deal was Ohtani deferring 97 percent of his contract.
Ohtani’s deferred payments allowed the Dodgers to continue adding talent, such as signing free agent pitcher Blake Snell and extending utility man Tommy Edman.
USA Today’s Bob Nightengale explained how Ohtani’s deferred salary was only possible due to his stardom in an interview with Dodgers Nation.
“Yeah, well, they’re making their money and they’re spending it,” Nightengale told Doug McKain of Dodgers Nation. “A lot of people don’t. You know, think about back in the days of George Steinbrenner — he was about the only guy who spent every penny and could care less about turning a profit. And I think even John Middleton of the Phillies had the great quote a year ago talking about the 1927 Yankees. Does anyone remember if they turned a profit or not? We know the Dodgers are going to turn a profit.
“The Ohtani thing, you know, was unbelievable. I’m still amazed that the Angels didn’t match that deal. But, you know, with a $2 million salary and $68 million deferred every year, it costs the Dodgers about $43 million a year, really. And they’re making more than that, not just on ticket sales, but on promotions, sponsorships, and tours coming in from Japan. So, I mean, he’s one guy. Aaron Judge sells some tickets, Soto sells, you know, but nobody sells tickets like Ohtani. That’s how Ohtani makes about $65 million a year off the field, but the next closest thing is about $6 or $8 million a year. No one has ever meant this much to baseball in terms of sponsorships and stuff. Maybe it’s like Babe Ruth.”
Ohtani understood he could earn money in other ways, while the Dodgers saw the opportunity to strengthen their championship chances by surrounding Ohtani with talent.
Photo Credit: Owen Ziliak/The Republic / USA TODAY NETWORK
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