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Los Angeles Dodgers pitcher Shohei Ohtani signed a groundbreaking contract worth $70 million annually in December 2023, resetting teh bar for baseball’s highest-paid players.
The Biggest paydays in Major League Baseball
Table of Contents
A look at the 32 MLB contracts with the highest average annual values, where deferred money adds a layer of complexity to the true cost.
- Shohei Ohtani’s deal with the Dodgers tops the list at $70 million AAV,though a meaningful portion is deferred.
- Juan Soto’s recent contract with the Mets boasts a $51 million AAV, considered the true record due to the absence of deferred payments.
- Deferred money impacts the calculation of AAV for luxury tax purposes, creating discrepancies between official figures.
The financial landscape of Major League Baseball continues to evolve, with teams increasingly willing to commit massive sums to secure top talent. Though, the way these contracts are structured-particularly the use of deferred payments-can significantly impact their true value. Here’s a breakdown of the 32 largest contracts in MLB history, ranked by average annual value (AAV).
The Top Tier
1. Shohei Ohtani, Dodgers: $70,000,000. Free agent contract signed December 2023. A remarkable 97.1% of the total contract is deferred from 2034-43. consequently, Major League baseball calculated the AAV at $46.06 million for luxury tax purposes. the MLB Players Association calculated the AAV at $43,783,056.30.
2. Juan Soto, Mets: $51,000,000. Free agent contract signed December 2024. With no deferred money included, this is widely considered the true AAV record.
3. Max Scherzer, Mets: $43,333,333.33. free agent contract signed November 2021.
4. Justin Verlander, Mets: $43,330,000. Free agent contract signed December 2022.
5. Zack Wheeler, phillies: $42,000,000. Extension signed March 2024.
t-6. Aaron Judge,Yankees: $40,000,000. Free agent contract signed December 2022.
t-6. Alex bregman, Red Sox: $40,000,000. Free agent contract signed February 2025. Considering deferrals, the AAV is considered $31.7 million for Competitive Balance Tax (CBT) purposes.
The Next Level of Investment
8. Jacob deGrom, Rangers: $37,000,000. Free agent contract signed December 2022.
9. Blake Snell, Dodgers: $36,400,000. Free agent contract signed November 2024. Considering deferrals, the MLBPA calculated the AAV as $31,735,498.
t-10. Mike Trout, Angels: $36,000,000. Extension signed March 2019.
t-10. gerrit Cole, Yankees: $36,000,000. Free agent contract signed December 2019.
12. Stephen Strasburg, Nationals: $35,000,000. Extension signed May 2019.A significant portion of the contract is deferred.
13. Anthony Rendon, Angels: $35,000,000.Free agent contract signed December 2019. Includes substantial deferrals.
14. Jose Ramirez, Guardians: $34,000,000. extension signed April 2023.
15. Mookie betts, Dodgers: $33,000,000. Extension signed July 2020.
