Shohei Ohtani holds the option to opt out of his colossal $700 million, ten-year contract with the Los Angeles Dodgers under specific conditions, as revealed by an unnamed source familiar with the agreement to The Associated Press on Wednesday.
Shohei Ohtani has the option to terminate his massive 10-year, $700 million contract with the Los Angeles Dodgers under certain conditions involving two key executives, a source familiar with the agreement disclosed to The Associated Press on Wednesday.
Ohtani, set for an official introduction at a news conference by the Dodgers, can exercise an opt-out clause if Mark Walter, the controlling owner, or Andrew Friedman, the president of baseball operations, are no longer in their roles, as revealed by the source who spoke anonymously due to undisclosed terms.
Reported by The Athletic, the deal stipulates that 97% of the payment will be deferred without interest and disbursed in full by 2043.
Despite the contract being in the form of a letter of agreement between Ohtani’s representatives and the team, a finalized contract has yet to be submitted to Major League Baseball, according to the source.
The specifics of Ohtani’s contract outline annual salaries of $70 million, with $68 million deferred without interest, payable in equal installments from 2034 to 2043 on July 1 each year.
In addition to his staggering salary, Ohtani’s contract includes several provisions such as a full no-trade clause, accommodations like a hotel suite during away games, a premium luxury suite for home games, and a dedicated interpreter. Moreover, Ohtani has pledged to donate up to 1% to the Dodgers’ charity.
The 29-year-old, known for his exceptional abilities both as a pitcher and hitter, left the Los Angeles Angels as a free agent after six seasons. He is expected to make a significant impact in Los Angeles, with fans eagerly purchasing Dodgers merchandise and expressing immense interest in ticket sales.
As the Dodgers prepare for Ohtani’s introduction, the contract’s valuation remains subject to different assessments, varying from $282,107,876 for MLB regular payrolls to $437,830,563 according to the players’ association.
