Shohei Ohtani’s historic $700 million contract and its impact – analysis and implications for the Dodgers and other MLB teams

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Shohei Ohtani’s Record Contract Leaves Questions About Value to Dodgers

In August, there were doubts about whether Shohei Ohtani would still get a record-breaking contract after his elbow injury that precludes him from pitching until 2025. The doubts also extended to whether he’d end up underpaid relative to his actual value to his team. However, with the recent news of Ohtani’s 10-year, $700 million deal with the Los Angeles Dodgers, some of those doubts have been put to rest.

The deal, which has significant deferred money, features an annual average value (AAV) of $70 million – the largest contract guarantee to any professional athlete in any sport. Ohtani, hailed as the most valuable player in the sport, brings unparalleled value both as a hitter and for the potential return to the mound in 2025. With his unique skills, Ohtani is set to immediately bolster the Dodgers’ offense, providing an upgrade for the team’s designated hitter position.

The Dodgers had a strong offense in 2023, but Ohtani’s offensive prowess and the potential return of his pitching abilities in the future make the team even stronger. His impact extends beyond the field and into the realm of ancillary revenue, driving his contract to new heights.

While Ohtani’s signing is undoubtedly a major win for the Dodgers, it raises questions about the team’s pitching needs for the upcoming seasons. The absence of quality pitchers in the Dodgers’ rotation and uncertainties around the return of injured players add to the challenges that lie ahead.

As for the 29 teams that missed out on Ohtani, especially the Angels, Blue Jays, and Giants, the impact is significant. The Angels, in particular, have missed a crucial opportunity to capitalize on the peak years of both Mike Trout and Ohtani, leaving uncertainties around their future prospects. The Blue Jays, although disappointed, showed ambition in pursuing Ohtani, highlighting the team’s readiness to invest in a superstar. Meanwhile, the Giants face the challenge of competing directly with Ohtani and the Dodgers, having missed out on a player who could have significantly improved their offense.

Overall, Ohtani’s record-breaking deal with the Dodgers has left a lasting impact on the team and has raised questions about the value he brings to the franchise. As the 2022 season approaches, all eyes will be on Ohtani as he aims to live up to the expectations set by his historic contract.

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