Shohei Ohtani can opt out of his $700 million, 10-year contract with the Los Angeles Dodgers if either of two key executives is no longer in place, a person familiar with the agreement told The Associated Press on Wednesday.
Ohtani, who will officially be introduced by the Dodgers at a news conference on Thursday, would be allowed to terminate his deal if Mark Walter no longer is controlling owner or president of baseball operations Andrew Friedman no longer is with the team, the person said.
The person spoke on condition of anonymity because the terms were not announced.
Ohtani’s deal, announced Monday, provides that 97% of the money be deferred without interest and not fully paid until 2043.
The Athletic first reported Wednesday that Ohtani’s deal contained a provision allowing him to opt out at the end of a season if the Dodgers made specific personnel changes.
Shohei Ohtani can opt out of his Dodgers deal if two executives aren’t in their current positions
The deal is still in the form of a letter of agreement between Ohtani’s representatives and the team, and a formal contract has not been submitted to Major League Baseball, the person said.
Ohtani’s contract calls for annual salaries of $70 million and of each year’s salary, $68 million is deferred with no interest, payable in equal installments each July 1 from 2034-43.
Ohtani will be introduced during a news conference in Dodger Stadium’s Centerfield Plaza starting 3 p.m. PST.
MLB reported Wednesday that Ohtani broke Fanatics’ record for the highest jersey sales within the first 48 hours of a release, topping soccer stars Lionel Messi and Cristiano Ronaldo.
Ohtani was out of sight at the stadium on Wednesday, meeting with teammates, including seven-time All-Star outfielder Mookie Betts and reliever Joe Kelly.
‘I had a chance to talk to him,’ Kelly said, surrounded by kids attending an outdoor holiday party with music blaring.
‘He was already working out, already grinding, getting bigger and stronger. His arm looked good to me.’
Ohtani’s deal includes a full no-trade provision and provides for a hotel suite on road trips, a premium luxury suite for home games and a fulltime interpreter. Ohtani will donate to the Dodgers’ charity an amount not to exceed 1%.
That’s thanks to a clause in his massive 10 year, $700million megadeal he recently signed
Ohtani last spoke with reporters on Aug. 9, two weeks before a pitching injury that required surgery and will keep him off a mound until 2025. He had the operation on Sept. 19, but the nature of the surgery was not fully announced. Ohtani had Tommy John surgery on Oct. 1, 2018.
A unique two-way star as both a hitter and pitcher, the 29-year-old left the Los Angeles Angels as a free agent after six years.
Kelly is switching uniform numbers after finalizing his $8 million, one-year contract with the team on Monday, opening No. 17 for Ohtani, who thanked him for the gesture.
‘I wasn’t going to give it up to just anybody,’ Kelly said. ‘If Shohei keeps performing, he’ll be a future Hall of Famer and I’ll be able to have my number retired. That’s the closest I’ll get to the Hall of Fame.’
Asked what Ohtani was giving him in return, Kelly said, ‘Oh, there’s a list, but no comment.’
Ohtani spoke infrequently to the media during his years in Anaheim, leaving his teammates to be peppered with questions about the enigmatic superstar.
Kelly said he was prepared to entertain Ohtani questions ‘maybe once a week.’
Ohtani’s move from Anaheim to Hollywood has sent fans on both sides of the Pacific Ocean flocking to buy Dodgers merchandise and inquire about tickets on the secondary market. The team has yet to begin single-game ticket sales for next season.
Ohtani is deferring all but $20m of the deal until after his contract runs its 10 year length
‘It’s going to be sold-out every game,’ Kelly said. ‘Every game that we’re a part of is going to be like a playoff atmosphere.’
Ahead of his 30th birthday on July 5, Ohtani has a .274 average with 171 homers, 437 RBIs and 86 stolen bases along with a 39-19 record with a 3.01 ERA and 608 strikeouts in 481 2/3 innings. Ohtani has 34.7 Wins Above Replacement (WAR), per Baseball Reference.
‘I think all around it’s a good gig for both parties,’ Kelly said. ‘The Dodgers are competitive every year and this is one of those things, he’s the highest paid player in all of sports, and we’re still going to be able to add to our team every single year he’s a Dodger.’
There are three different evaluations of what the contract is worth in present-day dollars.
– For purposes of the luxury tax, a 4.43% discount rate is used and the value is $460,767,685. That is the federal mid-term rate as defined in Section 1274(d) of the Internal Revenue Code, using the October 2023 rate. The figure means that Dodgers luxury tax payroll will be charged about $46.1 million annually for Ohtani.
– For purposes of MLB regular payrolls, a 10% discount rate is used and the value is $282,107,876. That is the J.P. Morgan Chase prime rate plus 1% rounded to the nearest full percentage point, as defined in Article XV (K) of the collective bargaining agreement.
– The players’ association evaluated the contract at $437,830,563.
General Billing Rules
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Sports Event Casino Handicap Description
|It means not giving in to each other, and winning 1 point wins all.
|Indicates that when the handicap team is tied with the transferee team, the team betting on the handicap loses 50%.
|Indicates that when the handicap team is tied with the transferee team, the team betting on the handicap loses.
|When the handicap team wins the handicap team by 1 point, the team betting on the handicap wins 50% and wins all 2 points.
|Indicates that when the handicap team wins the handicap team by 1 point, the two teams will tie and win by 2 points.
|When the handicap team wins the handicap team by 1 point, the team betting on the handicap loses 50% and wins all 2 points.
|When the handicap team wins the handicap team by 1 point, the team betting on the handicap loses all and wins by 2 points.
|When the handicap team wins the handicap team by 2 points, the team betting on the handicap wins 50% and wins all 3 points.
|Indicates that when the handicap team wins the handicap team by 2 points, the two teams will tie and win all 3 points.
|When the handicap team wins the handicap team by 2 points, the team betting on the handicap loses 50% and wins all 3 points.
|When the handicap team wins the handicap team by 2 points, the team betting on the handicap loses all and wins all 3 points.
|When the handicap team wins the handicap team by 3 points, the team betting on the handicap wins 50%, and all 4 points win.
|Indicates that when the handicap team wins the handicap team by 3 points, the two teams will tie and win all 4 points.
|When the handicap team wins the handicap team by 3 points, the team betting on the handicap loses 50% and wins all 4 points.
|When the handicap team wins the handicap team by 3 points, the team betting on the handicap loses all and wins all 4 points.
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