The $700 million deal the Dodgers gave Shohei Ohtani contract seems like the largest in sports history by a lot, but in reality this is really a team-friendly deal in many ways. We have never seen a deal structured remotely close to this one. The Dodgers will pay Ohtani just $2 million per year from 2024 to 2033, with interest-free deferrals paying him $68 million from 2034 to 2043. It is a unique deal for a unique player with possibly unique implications for the business of the Dodgers and professional baseball as a whole.
Let’s start with the math that the league is applying from a luxury-tax basis.