The salary information of Shohei Ohtani, a living legend in the baseball world, is always a hot topic. His contract with the Los Angeles Dodgers at the end of 2023, in particular, became a global sensation due to its scale and unique structure. As a baseball fan myself, I've been closely following Ohtani's every move. Today, I'd like to delve into the details of Ohtani's salary and contract as of 2025.
Ohtani signed a 10-year, $700 million (approximately ¥920 billion) contract with the LA Dodgers, the largest contract in professional sports history. This surpasses the previous record held by Lionel Messi's contract, an astounding sum. When this news broke, many wondered about his actual take-home salary; there's a special detail hidden within the total amount that can't be understood from the total figure alone.
Ohtani's contract totals $700 million, but the actual annual salary he will receive from 2024 to 2033 is a mere $2 million (approximately ¥26 billion). The remaining $680 million (approximately ¥894.1 billion) will be paid out over 10 years after the contract ends, from 2034 to 2043. This deferred payment clause, reportedly proposed by Ohtani's side, is even more surprising.
There are several reasons why Ohtani chose this radical contract structure. The main reason is to ensure team flexibility and pursue a championship. By receiving a lower salary during the contract period, the Dodgers can reduce the burden of luxury tax, similar to a salary cap, and have the resources to acquire other excellent players. In fact, after signing Ohtani, the Dodgers successfully acquired other key players, such as Yoshinobu Yamamoto, strengthening their team. Ohtani expressed his strong desire to win the World Series with the Dodgers in an interview, and he likely judged that this contract structure would contribute to achieving that goal.
Another important reason relates to tax issues. California's income tax rate is among the highest in the United States. If Ohtani moves his residence to a state with lower taxes after his playing career, he can significantly reduce taxes on the deferred amount. Of course, there are also critical perspectives that this contract form harms fair competition, and MLB also expressed concerns about the increase in deferred contracts.
Although his take-home salary during the contract period is low, Ohtani's total income is still astronomical. This is because he earns substantial additional income from activities outside of baseball, namely advertising and sponsorships. According to Forbes, Ohtani's non-baseball income is estimated at $35 million (approximately ¥46.1 billion) per year. Some predict that his sponsorship income alone will exceed $100 million (approximately ¥136.6 billion) in 2025.
He has sponsorship contracts with global brands like New Balance, Porsche, and Hugo Boss, as well as major Japanese companies. His high popularity and star power provide companies with enormous advertising effects, creating a virtuous cycle that leads to increased income for Ohtani. The Dodgers also reported a significant increase in sponsorship revenue after signing Ohtani.
Ohtani's $700 million contract is undeniably the highest ever. The average annual amount is $70 million, far exceeding the previous record of $43.33 million held by Max Scherzer and Justin Verlander. However, as mentioned earlier, his actual salary during the contract period is relatively lower than other top players. In the 2025 MLB salary rankings, Ohtani's actual earnings are different from the top ranks.
Nevertheless, Ohtani's total income, combining salary and additional income, is overwhelmingly superior to any other player. This proves his unique value as a "two-way" player exhibiting top-level skills in both pitching and hitting, along with his worldwide popularity. His contract holds significant meaning, going beyond a simple amount and setting a new standard for player valuation and contract methods.
In 2025, Ohtani will receive his contractually obligated salary of $2 million. However, his true financial worth will be revealed starting in 2034 when the contract ends. From then on, he'll receive a staggering $68 million annually for 10 years. Of course, considering future currency devaluation, the present value of the nominal $700 million will be lower, but the ability to generate enormous income steadily for decades after retirement is a highly attractive condition.
In my personal opinion, Ohtani's contract reflects a long-term financial plan and consideration of team success rather than short-term salary. Whether his contract will affect other players' contracts remains to be seen, but it's clear that Shohei Ohtani has achieved a groundbreaking contract that will be remembered in baseball history.
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