If you didn’t know, Shohei Ohtani was available this MLB offseason as an unrestricted free agent. The former Los Angeles Angel was predicted to switch LA allegiances and join the Dodgers. Backed by one of the largest payrolls in MLB history and superstars aplenty, Ohtani joining the Dodgers made the most sense for both sides. The Dodgers would unleash Ohtani along with perennial MVP candidates Mookie Betts and Freddie Freeman. Ohtani would officially enter one of the most popular media and commercial markets in the world. No offence to the Angels, but Anaheim is not the same as downtown Los Angeles. It would be like playing in Hamilton and calling your team part of Toronto; it is not the same.
The path to this perfect marriage was not as linear as it seemed. Toronto was gripped in Ohtani Fervor as Ohtani’s impending arrival hypnotized Jays fans for weeks. It had been reported in early December that Ohtani had neared his decision to two potential destinations. Toronto would have to prove their market was better for Ohtani than Los Angeles. For two weeks, Toronto sports media was sent into a frenzy. Formerly reliable sources had basically confirmed that Ohtani was on his way to Toronto. Torontonians then began tracking a private plane that was flying into Toronto from Anaheim. A random source on X claimed that Jays pitcher Yusei Kikuchi had reserved the tables at a sushi restaurant downtown. With this combination of impeccable reporting and reliable sources, it could only mean that the Toronto Blue Jays were about to sign Shohei Ohtani.
The discourse over the Ohtani contract was one of the most compelling storylines in all of baseball. How much does a player who statistically performs like a Cy Young pitcher and an elite power hitter producing at a MVP level get? Pitcher Ohtani is comparable to Gerrit Cole. Cole signed a 9 year / $324 million deal with the New York Yankees. Hitter Ohtani is comparable to Philadelphia Phillies superstar Bryce Harper. Harper signed a thirteen-year / $330 million deal in 2019. Therefore, Ohtani was estimated to be getting somewhere between $60-to-$70 million per year. It had been reported that Jays ownership was more than willing to pony up the finances to get the deal done. Ohtani is a marketing superstar in Japan and would generate much more revenue than the cost of his contract. Increased ticket prices, advertising revenues, and fanwear sales would offset what would be the largest contract ever signed in professional sports.
On 11 December 2023, Ohtani signed a ten-year / $700 million deal with the Los Angeles Dodgers. Jays fans were left devastated. This outcome was even worse since the Yankees had just acquired superstar Juan Soto. There are theories floating around that Ohtani used Toronto as a negotiating tool and as leverage to ensure the Dodgers offered him as much money as possible. However, the structure of the contract makes me skeptical. Ohtani has decided to defer $680 million of the $700 million until he retires. Therefore, the Dodgers would not be forced to pay an absurdly large luxury tax bill and maintain flexibility to add more superstar players. They did just that by signing Japanese ace Yoshinobu Yamamoto to a twelve-year / $325 million contract.
Financial advisors around the globe cringed when it was reported Ohtani would be deferring most of his contract. Specifically, $680 million of it will be paid out in ten years post-retirement. As a result, Ohtani will only receive $2 million per year in salary for the next ten years. No other professional athlete has deferred this much contract value ever. What makes Ohtani unique in baseball is his ability to command endorsement streams. His endorsements are estimated to net him $50 million per year. Comparatively, his former Angels superstar teammate Mike Trout is estimated to earn around $6 million from endorsements per year. For Ohtani, the money is not really an issue. By deferring most of his contract, the Dodgers can add more talent around him. This leads to a better chance to win a World Series. Ultimately, Ohtani made a decision to win and as sports fans we can do nothing but respect it.
Unfortunately, Toronto is a fanbase scorned again. Certain Jays reporters have become enemy number one, while the Jays front office is under more scrutiny than ever before to just a playoff series victory. You cannot unleash the prospect of acquiring the greatest player that has ever picked up a baseball and present to the fanbase Isiah Kiner-Falefa. Like with the Kawhi fiasco immediately post-parade, the Toronto fanbase laments the inability for Toronto to attract Tier A sports free agents that are not hockey players. I guess Jays fans should be happy paying much higher ticket prices and watching another season of underperformance by the Jays. No Ohtani for us.