The Los Angeles Dodgers made the biggest splash in MLB offseason history as they signed the new face of their franchise in Shohei Ohtani by finalizing a 10-year, $700 million contract.
Within the deal, $680 million of Ohtani’s total salary is deferred until after his time with the Dodgers. The purpose is to allow the team to remain flexible with their roster construction, keeping Ohtani’s number against the competitive balance tax (CBT) at a manageable rate of roughly $46 million.
Ohtani and his agency offered the same contract structure to interested teams, while also including language in his deal to ensure the Dodgers continue to build a high quality roster.
During president of baseball operations Andrew Friedman’s tenure with the Dodgers, they’ve been reluctant to include non-flexible clauses within player contracts. However, that changed with the signing of Ohtani as he received a full no-trade clause, per Jack Harris of the L.A. Times:
Ohtani was given full no-trade protection , which is believed to be the first time the Dodgers have included such a protection in a player contract since Friedman took over as the top executive.
Dodgers ownership and Friedman peeled back previous restrictions on both spending, and commitment with the signing of Ohtani. His unique stature as a player and phenomenon provides them with an investment both on and off the field.
Ohtani and the Dodgers elevates their quality of star power while providing them with a two-time unanimous MVP, who now has a chance to compete for a playoff spot throughout the life of his contract – something he never had with the Los Angeles Angels.
Shohei Ohtani contract tied to Andrew Friedman, Mark Walter
Also part of Ohtani’s deal is a clause that creates a level of consistency within the front office and with team ownership.
He added language within the deal that ensures Dodgers controlling owner Mark Walter and Friedman will remain with the team for the duration of his contract.
If either of them are no longer with the club, Ohtani has the ability to opt out following the conclusion of that season.
That represents another first for the Dodgers, and likely in any player contract in MLB history.
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