What Shohei Ohtani’s unique $700M contract could mean for the future of baseball

Amna Nawaz:

Major League Baseball's Shohei Ohtani is heading to the L.A. Dodgers.

His new home stadium is only about 30 miles north of where he currently plays with the Los Angeles Angels, but that small move is coming with a big paycheck. Ohtani's record-breaking $700 million 10-year contract recognizes his value as a unique baseball talent, the likes of which we haven't seen in generations.

Stephanie Sy looks at the Ohtani phenomenon, his massive contract, and what it could mean for baseball.

Stephanie Sy:

Shohei Ohtani's contract is the highest in professional team sports in North America. Ohtani blew by a recent record set by Kansas City Chiefs quarterback Patrick Mahomes by a good $250 million.

The 29-year-old from Japan dominates in both pitching and hitting. He was the league's most valuable player this past season.

I'm joined now by Joe Posnanski, a sportswriter who's on Substack under JoeBlogs and author of "Why We Love Baseball."

So, Joe, how great is Ohtani? Is he baseball's GOAT, the best player the sport's ever seen?

Joe Posnanski, Sportswriter:

Well, it's early a little bit to call him the greatest who ever played.

But what I think you can definitely say about him is, nobody has ever been like him. He is unlike anybody. We have never seen a player who both is a dominant hitter and a dominant pitcher at the same time. It has happened in the past. Babe Ruth started his career as a pitcher.

But by the time he hit, he had left pitching behind. To see what Shohei Ohtani has done the last three years has been just remarkable.

Stephanie Sy:

Ohtani said in his announcement that until the last day of his playing career, he wants to strive forward, not only for the Dodgers, but for the baseball world.

Why is Ohtani and this deal so good for baseball?

Joe Posnanski:

Well, I think it's because he's so good for baseball.

I mean, you hear in that statement what makes him so special. And that is that he's not just playing for himself. He's not just playing for his team. He's not just playing for today. He's playing to be one of the great players who ever lived. And it's a part of who he is. It's why he decided to try to hit and pitch.

It hasn't been done. It simply has not been done. It's been something that has driven him to be not only a great player, but one of the greatest and one of the players who pushes baseball forward. And, obviously, it's so good for the sport. And it's exciting for the sport to have him with sort of a marquee team like the Los Angeles Dodgers.

Stephanie Sy:

Yes. And I want to get to that team in a second.

But you can't be the greatest, right, without a World Series title. And with the Angels, Ohtani has never even made it to the playoffs. The Dodgers have made it to the playoffs every year for more than a decade. Is that what's in it for him?

Joe Posnanski:

It certainly is a big part of what's in it for him.

He — you're right. I don't think you can be considered the greatest ever if you haven't played in the World Series and thrived in the World Series, done some amazing things in the World Series. It's just sort of a part of baseball.

And it wasn't happening in Anaheim, in Los Angeles for the Angels. He needed, I think, to go to a team where he could succeed. And, like you say, the Dodgers have not only made the playoffs. They have won 100 games, I believe, five or six times in the last few years. Every year, they're a dominant team. That's got to be very exciting for him. And it's exciting for us.

Stephanie Sy:

So between Ohtani, Mookie Betts, and Freddie Freeman, this trio is going to generate a lot of excitement. But that's a colossal amount of pressure to win the World Series. Is there any doubt they can handle that?

Joe Posnanski:

I don't think there's any doubt they can handle the pressure, because all of them — certainly, Mookie Betts and Freddie Freeman have been there already.

Also, what's really fun about the Dodgers, at least from an outsider's perspective, is, they face this pressure every single year. There's no year where it's good enough even just to win 100 games, just to make the playoffs. The intense pressure is on them to win the World Series every year.

And they haven't really done that. They have won one World Series, this group, and that was back in 2020 during the COVID year. So it's a little bit of a different kind of season. So that pressure is always there.

Stephanie Sy:

Well, I want to talk a little bit about this contract, but also the fact that Shohei Ohtani has had two surgeries related to his elbow, and I believe has another surgery going in, and he won't be pitching next year.

He will be hitting, but not pitching. Ninety percent — 97 percent of the actual payout in that contract basically is deferred until he's like 40 years old, about ready to retire. First of all, that's legal? And doesn't that give the Dodgers another advantage to keep paying high salaries to the other great players in the organization?

Joe Posnanski:

Yes, I think that had to be a big, big part of it for Ohtani.

It doesn't feel legal to me, honestly. I mean, it's a $700 million contract that doesn't really begin until 2034. So that's — it's a very, very strange thing, and it's kind of hard to even get your arms around what it means.

But for the Dodgers, it does mean that they can go out, get more pitching, which is what they need right now. And as far as Ohtani and the injuries, that had to be a huge part of the decision process, because you're right. I mean, as we — as far as we know, he's not going to pitch this year. We don't really know exactly what the surgery has been and where his elbow is from a health perspective.

You would think the Dodgers have a much better perspective on that than any of us do. But the thing that's so amazing about Shohei Ohtani is how driven he is, how driven he is to get better, how driven he is to, as we say, be a part of baseball history.

So I'm sure what the Dodgers are betting on is that kind of commitment from Shohei Ohtani.

Stephanie Sy:

Joe Posnanski, author of "Why We Love Baseball," great to have you.

Joe Posnanski:

Great to be here.