Over the recent weekend, the Los Angeles Dodgers inked a groundbreaking 10-year deal with the two-way sensation Shohei Ohtani, setting a new record in professional sports contracts with an astonishing value of $700 million. This surpasses the previous pinnacle set by Lionel Messi’s $674 million agreement with Barcelona FC in 2017.
In a notable update reported by Fabian Ardaya of The Athletic, it was disclosed that Ohtani would defer $68 million of his annual $70 million compensation throughout the duration of his contract with the Dodgers. Specifically, Ohtani is slated to receive $680 million of the total $700 million between the years 2034 and 2043.
The unique structure of Ohtani’s deal inevitably sparked comparisons to the infamous Bobby Bonilla situation, drawing parallels for apparent reasons. Bonilla, a former Mets player, has been receiving approximately $1.2 million annually from the club since July 1, 2011, as per a shrewdly negotiated contract with his agent.
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Released by the Mets after a challenging 1999 season, the team owed Bonilla $5.9 million. However, Bonilla and his agent orchestrated an arrangement that translated to him being paid a little over $1 million per year from 2011 to 2035. This strategic move, rather than an upfront payment, resulted in a considerably more lucrative deal for Bonilla. The agreement is estimated to have yielded Bonilla around $23 million more over time, even before factoring in inflation.
There is a cautious hope that this innovative contract structure for Ohtani doesn’t pose any future challenges for the Dodgers.
