Breaking: Shohei Ohtani, former Los Angeles Angels superstar, has decided to join the Los Angeles Dodgers for a record-breaking deal worth $700 million for 10 years. The two-time American League MVP and three-time All-Star informed his fans on Instagram regarding his highly-anticipated decision.
The Japanese hotshot has been captivating baseball fans since joining the MLB in 2017. After leaving an illustrious career in Japan’s NPB (Nippon Professional Baseball), the young all-around player went to the United States to become a bigger star. “Shotime” immediately made an impact on the league, winning the 2018 AL Rookie of the Year and more accolades along the way. Ohtani was just coming off a gold medal victory in the World Baseball Classic international competition, where he made Japan champions again after beating the United States national team.
Shohei Ohtani’s $700 million deal with the Dodgers becomes the largest contract in North American sports history, not just the MLB, but also the NBA, NFL, and MLS.
Before the Los Angeles Dodgers gave the reigning MVP a multi-million dollar deal, Ohtani’s former teammate, Mike Trout, previously held the record for the biggest MLB contract. Ohtani’s $700 million pay bested Trout’s 12 years, $426.5 million he signed with the Los Angeles Angels in 2019. It also happened to be the largest contract in North American sports history, which means Shohei Ohtani will be breaking two records at once.
Shockingly enough, even the combined contracts of the third and fourth highest-paid MLB stars, Mookie Betts (L.A. Dodgers) and Aaron Judge (New York Yankees) are just a few million higher than Ohtani’s hefty deal.
Here are the biggest contracts in other major American sports in 2023:
- NBA: Jaylen Brown of the Boston Celtics – Signed a supermax deal in July 2023 worth $304 million in 5 years. It’s the biggest contract in NBA history so far.
- NFL: Patrick Mahomes of the Kansas City Chiefs: Agreed to a 10-year, $503 million extension in 2020.
- MLS: Lionel Messi of the Inter Miami FC – Messi is officially the highest-paid soccer player in MLS after signing with Inter Miami earlier this year. Although his base salary of $12 million plus a guaranteed $20.4 million additional compensation is far from what he used to get in Europe, La Pulga is more likely getting more money with the endorsements.
Additionally, even if we consider the highest-paid European football players and even those who have taken their talents to the Saudi Arabia football league, it’s still not even close to Shohei Ohtani’s $700 million record-breaking contract.
Cristiano Ronaldo of Al-Nassr, the highest-paid footballer right now, is getting €200 million ($215 million) per year, with a contract that allows him to play for the club for at least two and a half years. Meanwhile, Paris Saint Germain F.C.’s superstar, Kylian Mbappe had the opportunity to become the highest-paid athlete in history after Saudi club Al-Hilal wanted to acquire the French forward.
In pursuit to complete this quest, Al-Hilal submitted a €300 Million ($332 Million) bid to sign Mbappe from PSG. That excludes their one-year salary offer for the former World Cup champion, which could potentially reach €700 Million ($776 Million). In total, that could amount to €1 Billion ($1.1 Million) to sign one player. This package would have been the biggest ever in sports history, worldwide! However, Mbappe turned down the offer and is still with PSG right now.
Is Shohei Ohtani the highest-paid athlete in 2023?
Despite the jaw-dropping $700 million money that’s going to his bank account, Ohtani is still generally, not the highest-paid sports icon. His annual average value is considered the highest in MLB, but it’s not the highest in all sports. If you think it’s Cristiano Ronaldo’s $215 million per year pay, then you’re still wrong. As of December 2023, the title of being the highest-paid athlete goes to professional golfer Jon Rahm.
Rahm, 29, previously played in the PGA Tour. However, after 8 years, the defending Masters champion has agreed to transfer to the Saudi-supported organizer that rivals the PGA Tour. According to various sources, Jon Rahm is reportedly going to earn a total of $556 million in three years, with $302 million of that being paid upfront. He will be the youngest athlete to reach that kind of money, a huge amount that Saudi Arabia isn’t afraid to spend on an 11-time PGA Tour winner.
How much does Shohei Ohtani actually earn from his $700 million deal?
$700 million for 10 years means that Ohtani’s annual average value (AAV) is about $70 a year. Although that amount is correct, that is not exactly what the 29-year-old superstar will actually be earning on a yearly basis. There are some factors that needs to be considered with this kind of money such as federal tax, luxury tax, income tax, state tax, jock tax (for non-residential athletes only), management fee, agent fee, insurance, health care, and many more.
With all of these combined, Shohei Ohtani‘s net income would be about 50% of his AAV, which is probably around $35 million. Moreover, inflation and deferral are also things that need to be observed with this hundred-million contract. He would, however, have saved a lot on taxes if he played on Texas teams because this state does not impose a payment for an individual income tax.