Yes, Shohei Ohtani is a bargain at $700 million

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Yes, Shohei Ohtani is a bargain at $700 million

I don’t know if it’s funny or sad, but with a $700 million contract, Shohei Ohtani is a steal.

With his earnings, he could become majority owner of nine major baseball teams and 22 in the NHL. But it’s a godsend.

Last season, 11 major league baseball teams didn’t even give as much money to their 26 regular players as the Dodgers will only give Ohtani this year. But it’s a godsend.

In Canadian money, the Japanese phenomenon will earn $261,000 per day, or $10,800 per hour or even $3 per second. Even when he’s not playing. Even when he falls asleep. Even when flossing. Even when he tries a spaghetti sauce recipe. But it’s a godsend.

This is the largest contract in the history of sports in North America. But it’s a godsend.

For what? Because if you look at Ohtani’s contribution in a very factual way, at $70 million a year, he is underpaid.

He should have received around $76 million.

His value

You have to consider his value as both a pitcher and a hitter.

As a pitcher, Gerrit Cole earns $36 million per year for three years. Ohtani hits more often than him. Hitters also have a better batting average against Cole than Ohtani. But Cole is throwing more often and making more catches. It should also be considered that the first of ten years it will not be launched. It is therefore necessary to deduct one year of salary as a pitcher over the ten years of the contract. We must also consider that Justin Verlander and Max Scherzer earned $43 million for one year last year, at ages 41 and 39. It’s crazy, but it could benefit Ohtani who will be 39 years old at the end of his contract. Considering Ohtani is more and more dominant on the mound every year and is likely to be the best pitcher in the world starting in 2025, he could command $40 million per year. This is without forgetting that, in five years, with the increase in salaries, he will certainly not be the highest paid pitcher with 40 million dollars. So 9 years at $40 million = $360 million.

Regarding his value as a hitter, it’s not simple. But 44 homers in 135 games in 2023 come with a steep price. Ohtani is already one of the best hitters in the world and he will remain so for a long time. The problem is that he will primarily be a designated hitter. Aaron Judge makes $40 million, but he’s a solid outfielder. Mike Trout wins 36, but he can do it all on the field. Corey Seager is reaching 35, but he plays shortstop, a key position. But given that he already hits more than Judge, I think Ohtani could demand $40 million per year. Over 10 years, that represents $400 million.

In total, Ohtani is worth $760 million over 10 years. Obviously, he may not be worth $76 million at 37, 38 and 39 years old. But it may be worth more at 32, 33 and 34 years old.

And to convince the Dodgers to offer him such an amount, the team can reassure itself by knowing that Ohtani can bring in an additional $20 million per year through sponsorships, merchandise sales and ticket revenue, said the searcher. Vince Gennaro, author of the book: The economics of winning baseballat SamaGame.

Spend to earn

The Dodgers are worth $4.5 billion. Only the Yankees are worth more. The California team makes about $14 million a year in revenue, according to Forbes, which is not high despite their enormous expenses ($240 million in payroll). But that’s how things are done in major league baseball, much more so than in the NHL. The owners of the big markets spend lavishly to win.

I’m thinking of the Tampa Bay Rays who are roughly worth Ohtani’s contract and paying all their players $52 million. Every year, the Rays work miracles to stay at the top. This is therefore a new setback for small markets which will soon have no chance of establishing themselves, even if they can sometimes come close. The Rays will try to find a rare gem at $4 million per year to solidify their team. It can work, but at some point, money ends up being the right solution.

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Yes, Shohei Ohtani is a bargain at $700 million - 1

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Ivan Rivera

multifaceted individual driven by a thirst for knowledge and creative expression. Armed with an A.A. in Computer Science & Movie Production from Pasadena City College, Ivan is an aspiring author, pouring his imagination onto the pages of captivating stories. With a background as a retired scientist and chartered engineer, his passion for exploration and innovation knows no bounds. In a previous chapter of his life, Ivan served as a marine engineer on superyachts, navigating the seas and embracing the adventure that comes with it. Today, he continues to embark on a new journey, weaving tales that captivate the hearts and minds of readers worldwide.