Shohei Ohtani signed a mostly backloaded contract with the Los Angeles Dodgers two winters ago, and the pact will provide him with financial security for decades after he departs.
At the time, Ohtani’s contract had no comparable – perhaps Bobby Bonilla of the New York Mets, whose contract expires in 2035 – but Ohtani will continue to collect installments from the Dodgers long after his playing career. Los Angeles defers up to $68 million of Ohtani’s $70 million AAV per year.
It’s a wise business decision for a player who recognizes his own value. That is exactly what the Tokyo Series highlighted. As Ohtani’s presence in the United States rises to match his status in Japan – and it will, thanks to deals with brands like New Balance – he will earn considerably more in sponsorships than he ever would by playing baseball alone. According to Yahoo’s Bill Shaikin, there is no place in Tokyo where you won’t run upon Ohtani. “His image appears everywhere, in advertisements above street crossings and at airports, on television, and in magazines. “He endorses shoes, skin care products, airlines, watches, and so much more,” Shaikin said. “Those marketing deals have become so lucrative that Ohtani will make an estimated $100 million in endorsement revenue this year, without a penny from the Dodgers.” Shohei Ohtani’s sponsorship arrangements indicate another issue for MLB.
Ohtani has shown to be significantly more marketable than players such as Juan Soto. While Soto got the largest contract in MLB history this winter – $765 million, he is largely unknown outside of sports. Soto is anticipated to earn only $7 million in endorsements this season, according to Sportico. Ohtani will make more than ten times that. Bryce Harper of the Philadelphia Phillies ranked second behind Ohtani in endorsements, with only $10 million.
As spectacular as Ohtani’s figures are, they also pose a concern for MLB. One player should not control such a large portion of the market. Baseball has many stars, but the league does not know how to differentiate or sell them. It has long been an issue for a popular sport with an aging populace.
NBA has long exceeded MLB is the second-most popular core sports league in the United States after the NFL for a reason. Basketball is an individual sport. Highlights and games are easier to obtain. MLB and its fans have grown tired of hearing this argument.
, and while Ohtani is a bright spot in an otherwise grim marketing landscape for baseball players, it’s something Rob Manfred and the league office should be working on every day.
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