Beyond imagination is what Ohtani’s $700 million, 10-year contract is. But rather than evaluate this signing (and decry it) as yet another (and possibly the most) outrageous sports deal, I view it as good for baseball. Here’s why.
Many people have been sounding off on Shohei Ohtani’s absolutely monstrous contract with the LA Dodgers. I am surprised about the $700 million number because he will not pitch in 2024. But that shows how much value he offers a franchise, even though only 4-5 franchises realistically had the resources to sign him anyway.
Many are decrying his being signed, but having Ohtani as a Dodger maximizes his value (even without pitching in ‘24). The other 29 teams will receive revenue-sharing and the luxury tax fine payment.
I believe that the former executive director of the MLBPA, Marvin Miller, would be happy with the result, even if Ohtani’s camp was a bit silly during the free agent courtship process.
That said, there is concern about how analytics can help management potentially suppress wages among rank-and-file players. That possibility would exacerbate a growing financial disparity on the players’ side of the game.
But for now, Ohtani is a unicorn, the sweepstakes winner. We will see how he helps lift the rest of the game.
