Shohei Ohtani, the two-way superstar has changed baseball forever by signing an unfathomable 19-year, $700,000,000 contract with the Los Angeles Dodgers, sending shockwaves across the MLB.
MLB insider Ken Rosenthal has reported that, according to unnamed sources, the Japanese superstar can opt out of his contract if there is a change regarding an unspecified member of the organization.
Wow..
Ohtani put it in his contract that he can basically opt-out if they fire his translator Ippei or certain employees. WILD https://t.co/sXcT5ePb0E
— Fuzzy (@fuzzyfromyt) December 13, 2023
There is no word yet on which person this contract clause refers to, but fans cannot help but speculate. MLB fans have begun to speculate who Shohei Ohtani does not want to lose in the organization.
There are a number of Los Angeles Dodgers personnel that fans are predicting is the mysterious person referred to in the contract clause.
People knew that free agent baseball star Shohei Ohtani was going to get a record contract this offseason, which was understandable given he is arguably the best all-around player ever when considering his batting and pitching statistics.
However, what further stunned people was news on Monday that Ohtani has decided to defer $680 million of the contract until after his playing days are over, meaning he’ll take in roughly $2 million of salary each year for the duration of the contract that will run through 2033. Instead, Ohtani will be paying much less in taxes at $2 million a year.
Here are the athletes who currently have the biggest contracts other than Ohtani:
Athlete – Sport – Team – Contract
Cristiano Ronaldo – Soccer – Al Nassr – $536 million, 2 years
Patrick Mahomes – Football – Kansas City Chiefs – $450 million, 10 years
Karim Benzema – Soccer – Al-Ittihad – $436 million, 2 years
Mike Trout – Baseball – Los Angeles Angels – $426 million, 12 years
Carlos Alvarez – Boxing – Premier Boxing Champions – $365 million, 5 years
From 2034 to 2040, the Dodgers will be paying out nearly $83 million a year for players who likely will be retired. Mike Trout Baseball Los Angeles Angels $426 million, 12 years as mentioned above, former teammate Mike Trout is the now the second-highest paid player in baseball since he is in the middle of a 12-year, $426 million deal.
Behind him is Mookie Betts of the Dodgers ($365 million, 12 years), Aaron Judge of the New York Yankees ($360 million, 9 years), Manny Machado of the San Diego Padres ($350 million, 11 years) and Francisco Lindor of the New York Mets ($341 million, 10 years).
The contract terms are staggering: 10 years and $700 million.
Per source, Shohei Ohtani’s contract with the Dodgers states, “Player will donate to club charity amount not to exceed 1 percent.” Also gives him suite at Dodger Stadium for all regular and post-season games and provides for interpreter.
— Ken Rosenthal (@Ken_Rosenthal) December 13, 2023
Needless to say, Ohtani’s record-setting contract is very complicated, he will not be paid a straight $70 million per year for 10 years.
“In an effort to enable the Dodgers to continue spending around stars Ohtani, Mookie Betts and Freddie Freeman, Ohtani agreed to defer all but $2 million of his annual salary — $68 million of his $70 million per year, until after the completion of the contract.”
A team’s payroll for CBT purposes is calculated in terms of average annual value. For instance, a player on two-year, $20 million contract who’s paid $5 million in year one and $15 million in year two is nevertheless a $10 million CBT hit in both years because that’s the average annual value of his contract.
However, Scherzer agreed to defer half his salary each year, which lowered the present-day value to approximately $185 million. Ohtani’s new teammates Mookie Betts and Freddie Freeman both have substantial deferrals in their contracts with the Dodgers.
The Dodgers had a $267.2 million payroll for CBT purposes in 2023. The Mets hold the all-time record with a $366.2 million CBT payroll this year.
The CBT has come to serve as a “soft” salary cap of sorts in MLB, and teams at the high end are constantly maneuvering in and out of taxable territory, sometimes in an effort to “reset” their penalty status and avoid the higher tax tiers reserved for repeat violators.
The Dodgers will be happy to earn interest on some of the money Ohtani deferred, and he also helped them avoid the steeper CBT penalties moving forward. The CBT threshold payroll for 2024 is $237 million, as agreed upon by the players union and MLB.
First year: 20% tax on payroll above CBT threshold As well, teams are penalized for the extent to which they exceed the threshold figure in a given year: He wanted to lower his CBT number and give the Dodgers more freedom to spend on the team around him and avoid those higher tiers above.
It’s a 10-year contract with no opt outs or option years, though there’s a possible escape hatch on Ohtani’s end.
Ken Rosenthal reports there is a clause stating,
“If specific change in Dodger personnel, player may opt out of contract at end of season the change occurs.”
This opt out will trigger if either president of baseball operations Andrew Friedman or controlling owner Mark Walter loses his role with the team.
Contract also states, “If specific change in Dodger personnel, player may opt out of contract at end of season the change occurs.” Not known at present who this refers to.
— Ken Rosenthal (@Ken_Rosenthal) December 13, 2023
This past season, Ohtani made approximately $40 million in endorsement deals, according to the Los Angeles Times.
Given how much he banks each year in endorsements and given that his off-the-field earning power is likely to increase with the flagship Dodger brand behind him, Ohtani was uniquely positioned to defer all but $2 million in salary each year.
My guess is that it's his interpreter Ippei Mizuhara. He resigned from the Angels during the lockout because the two of them would have been prohibited from contacting each other.
— yodasonics (@yodasonics) December 13, 2023
The long-time English- and Japanese-speaking interpreter has become a mainstay in baseball circles the world over, helping to translate for Ohtani as the superstar works on improving his English.
Language barriers are nothing new for MLB players, and they have been the smallest of hurdles for Ohtani amid the All-Star’s skyrocketing baseball career. And Mizuhara is much more than a simple translator for the world’s top baseball player.
The Angels signed Ippei Mizuhara as Ohtani’s interpreter after Ohtani was posted to MLB by NPB’s Hokkaido Nippon-Ham Fighters following the 2017 season.
Mizuhara has served in that role ever since, though he did briefly resign from his position during the 2021-22 MLB lockout so he could continue communications with Ohtani. His position has expanded beyond simply translating: he also helps on the baseball side, throwing to Ohtani in side sessions, watching tape of opposing pitchers and studying scouting reports.
Mizuhara told The Athletic that speaking accounts for only 10 percent of his job alongside Ohtani. Mizuhara’s career as an interpreter and his relationship with Ohtani both date to before Ohtani signed with the Angels.
Following that, Mizuhara traveled to Japan in 2013 to interpret for the Fighters’ English-speaking players, including Chris Martin.
“Ever since then, I just watched a lot of MLB.”
Mizuhara also said he followed the Mariners because of Ichiro Suzuki, as he relayed to Bally Sports West in a 2018 interview:
“I was more of a Mariners fan because of Ichiro,”
Mizuhara said.
“And the Angels were still good at the time, but I always came to the field to watch the Mariners, and maybe the Yankees.”
Fans expressed their opinion as follows:
This is insane but I think no one will fire Ippei. He was just as popular as Shohei to many Angels fans. Everyone would riot if he was fired for any reason!
— CJ Waterman (@CJ_Waterman_25) December 13, 2023
Ippei's the hardest working man in baseball. 365 days a year.
— マリア¹⁷ (@TweetleDuh13) December 13, 2023
It’s a little too much. Ik he’s the man but this is crazy. Basically gave him owner ship stake at this point
— YankeeFan 4ever (@Ghost_Fendiii) December 13, 2023
If he opts out at any point does that mean the dodgers will have only had to pay him $2M per season and they'll be off the hook for the rest? Maybe they fire Ippei in year 10 to see if he leaves and they can save $680M LOL
— Breakfast (@Breakfast905) December 13, 2023
The better question is since players/GMs/managers are technically dodger personnel/employees does this apply to them as well
— jay (@jclyde21) December 14, 2023
But if he opts out, he just loses all the deferred money right? Because when you opt out you opt out of all the terms
— matt bodkin (NYG, NYM, NYK & NYR) (@matt03183017) December 13, 2023
Dodgers seem so desperate it’s wild. More that comes out the more I’m like aight Blue Jays maybe dodged one.
— smokey (@SmokeyWyvern) December 13, 2023
Ohtani is going to become an owner of the Dodgers after his playing career.
— happy happy (@thehappyartist) December 13, 2023
So the Dodgers can fire his translator in year 7 and they’re off the hook for paying the remaining $686m?
— Blipp Trackmon (@T_Blackmon9) December 13, 2023
