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The Ohtani contract is huge, but small market teams can still compete

Shohei Ohtani announced over the weekend that he will be playing for the Los Angeles Dodgers for the next decade. The deal will be worth $700 million, which is a lot of money in the same way that Mike Trout’s $426 million extension with that other Los Angeles team is a lot of money.

But it’s not just a lot of money in raw dollars. It’s a lot of money compared to other contracts in baseball, and it’s a lot of money compared to the other contracts in American sports. The biggest contract in the NHL? Alex Ovechkin’s extension with the Washington Capitals for $124 million.