An Analysis of Shohei Ohtani’s Unusual Contract With the Dodgers

Published on December 21, 2023

Commentary Shohei Ohtani is a Japanese baseball star who just signed a $700 million contract with the Los Angeles Dodgers, making him one of the highest paid players in sports history. The full contract hasn’t been made public and is pending a few details before being finalized. That means I haven’t been able to read it, but enough information has been made public that some analysis is possible. I thought it would be fun to dive into a situation where pop culture meets finance and loop in some of the topics I frequently discuss. Mr. Ohtani has agreed to play for the Dodgers for the next 10 years and get paid $2 million a year during that time. The other $680 million of the contract will be paid during the following 10 years....

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