Shohei Ohtani – the Japanese dual-threat sensation – recently shook the world of professional sports by signing a historic contract with the Los Angeles Dodgers.
This 10-year, $700 million deal not only earns him the honor of being the highest-paid athlete in North American professional sports history but also comes with an unusual opt-out clause, according to industry insiders.
Shohei Ohtani can opt out of his megadeal with the Dodgers if owner Mark Walter or president of baseball ops Andrew Friedman lose their roles with the club pic.twitter.com/YgSoPZuXaY
— B/R Walk-Off (@BRWalkoff) December 14, 2023
As per the terms of the deal, the player has the option to break his contract if the Dodgers’ team owner, Mark Walter, or the President of Baseball Operations, Andrew Friedman, is no longer associated with the team.
Shohei Ohtani’s mega deal, officially announced by the Dodgers on Monday, stands at a whopping $700 million, spread over a span of 10 years.
Digging into the details of the contract, it becomes apparent that the club pays Ohtani $2 million every playing season, setting aside an extra $44 million in an escrow account to fund the deferrals.
This results in a total value of $437,830,563 when accounting for the deferrals.
Despite a staggering contract value, the Dodgers’ annual charge towards their competitive balance tax payroll will still circle around $46 million.
This ensures that while this deal takes a considerable chunk out of Dodgers’ finances, it doesn’t cripple the team’s ability to build a competitive roster around Ohtani, keeping in line with Friedman’s prudent team-management philosophy.
Unlike typical contracts, Ohtani’s deal doesn’t include a traditional opt-out clause.
Instead, it triggers an opt-out if either Mark Walter or Andrew Friedman, two significant figures in the Dodgers organization, depart from their roles.
