The Los Angeles Dodgers have made a historic and record-breaking move by acquiring Shohei Ohtani, the reigning American League Most Valuable Player, who has agreed to terms on a massive 10-year, $700 million deal with the team. The historic and unique contract was described as a commitment from both sides to long-term success by Ohtani’s agent, Nez Balelo of CAA Sports. The deal is not only the largest in MLB history, surpassing Aaron Judge’s nine-year, $360 million contract, but it also surpasses soccer superstar Lionel Messi’s deal with FC Barcelona.
Ohtani is set to play until his age-39 season, contributing not only as a phenomenal pitcher but also making a strong impact at the plate. Although he won’t be available to pitch in 2024 due to recovering from surgery, Ohtani will step in as the Dodgers’ designated hitter next season, alongside National League Most Valuable Player runners-up Mookie Betts and Freddie Freeman.
The deal includes unprecedented deferrals recommended by Ohtani, mitigating competitive balance tax and cash-flow burdens to maintain the Dodgers’ flexibility to be competitive in the future. Moreover, there are also tax benefits due to the deferrals. Ohtani expressed his desire to win above all else, which became a significant factor in structuring his contract.