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Shohei Ohtani signs 10-year, $700 million contract with Dodgers

Reigning American League Most Valuable Player Shohei Ohtani ended speculations about his next team by announcing via his Instagram account that he will join the Los Angeles Dodgers. The Japanese sensation agreed to a ten-year, $700 million contract with the seven-time World Series champions.

He first expressed his gratitude to the Los Angeles Angels organization and fans who have supported him in his first six Major League Baseball seasons. Then, he pledged to Dodgers fans that he would do what’s best for the team and strive forward for their success.

Ohtani is a two-time American League Most Valuable Player, winning in 2021 and 2023. Last season, he led the AL with 44 home runs, 325 total bases, and a .412 on-base percentage. He also led all players in slugging percentage (.654) and OPS (1.066).

Those numbers earned him an MLB All-Star selection and a Silver Slugger Award. But his pitching prowess makes him a unique talent. In 2023, he had a 10-5 record and a 3.14 earned run average with the Angels. He struck out 167 batters and had a 1.061 WHIP in 132 innings pitched.

However, Ohtani won’t pitch next season after undergoing the second major surgery on his elbow in five years. Dr. Neal ElAttrache, the Dodgers’ team physician, operated on him. He will return to the pitching mound in 2025 and likely fill the designated hitter position.

Ohtani’s contract with the Dodgers easily trumps the 12-year, $426.5 million deal signed by his former teammate, Mike Trout. The Dodgers will also pay over a billion dollars to Ohtani and Mookie Betts (12 years, $365 million).

But as MLB insiders have mentioned, a significant portion of Ohtani’s earnings will be deferred. While he will have an average salary of $70 million annually, the Dodgers will be charged a luxury tax rate of around $40 to $50 million. The team can then use the savings to sign other players. Ohtani’s contract doesn’t have an opt-out clause.

Aside from Betts, Ohtani will join a stacked Dodgers roster featuring Freddie Freeman, Max Muncy, Will Smith, and Jason Heyward. The Dodgers will start the 2024 MLB season against the San Diego Padres in South Korea. They will also face the Angels twice next season.

-Lance Fernandez

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