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Shohei Ohtani’s contract allowing Dodgers to build dynasty
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- Shohei Ohtani’s contract allowing Dodgers to build dynasty
They have already won the offseason, their recruitment of closer Edwin Diaz addressing their most obvious shortcoming.
Now, the Dodgers have a chance to pile on, as they continue to be linked to the best players on the free-agent and trade markets.
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Shohei Ohtani signed a 10-year deal with the Dodgers in 2023. AP
Don't count them out.
Also possible.
If the Detroit Tigers elect to deal the left-hander, the Dodgers have the prospects to make a trade and the bank account to sign him to a contract extension.
This was the vision.
Shohei Ohtani has won two World Series rings in his first two years with the Dodgers. Getty Images
More specifically, this was the vision Shohei Ohtani shared with the Dodgers when he signed with them two winters ago.
Ohtani proposed a distinctive structure for his 10-year deal, which has enriched the Dodgers to where it has changed how they go about constructing their rosters.
The results: Two World Series titles in two years, and another winter in which the Dodgers remain the Big Stack of the Big Leagues.
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"I'm very pleased with how things have worked out so far and I'm anticipating things will continue to stay on track," said Nez Balelo, the agent who was the architect of Ohtani's contract.
Ohtani is technically an employee of the Dodgers, but in reality he's more like a partner.
Shohei Ohtani's contract has allowed the Dodgers to acquire stars like Yoshinobu Yamamoto. Getty Images
By agreeing to defer all but $2 million of his $70-million annual salary, Ohtani is saving them money in the short term. By opening a window for them to invest and multiply the money owed to him, he is giving them an opportunity to generate additional revenue.
Some industry insiders estimate over the lifetime of the contract, Ohtani's economic impact on the franchise could be upwards of $1 billion. And two years in, such estimates are starting to feel conservative.
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To their credit, the Dodgers have done what they said they would do, reinvest a substantial portion of their profits into their on-field product.
Shortly after Ohtani joined the Dodgers before the 2024 season, they directed more than $500 million to the acquisitions of Yoshinobu Yamamoto and Tyler Glasnow .
They went on to win the World Series.
The Dodgers followed that with another big-spending winter, with close to $500 million spent on a group of free agents that included Blake Snell , Tanner Scott and Teoscar Hernandez .
Shohei Ohtani is a four-time MVP. AP
They went on to win another World Series.
This winter, the Dodgers picked up the best reliever on the market in Diaz. There are limits to how freely they will spend – they aren't inclined to sign Tucker to a long-term contract, for example – but they also aren't talking about resetting the luxury tax by lowering their payroll to under the penalty threshold.
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If the markets for any of the top remaining free agents crater, the Dodgers are positioned to pick them up on a shorter-term contract with a higher average annual value.
The Dodgers don't have to make any other significant moves between now and the start of spring training, but they can .
"We have different paths to round out the team," general manager Brandon Gomes said after the addition of Diaz. "It could be making additional impact-type moves. Or it [could be] rounding out the 40-man [roster]. Or a little bit of both."
Ohtani's contract gives the Dodgers options.
Little wonder why team owner Mark Walter said in October that Ohtani was the greatest free-agent acquisition in history.
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"You bet," Walter said.
Some rival agents have criticized Ohtani's deal for being overly favorable to the Dodgers, but that misses the point.
Shohei Ohtani returned to pitching in 2025. MLB Photos via Getty Images
The legacy-driven Ohtani got what he wanted.
The player who never reached the postseason in six years with the Angels is now a two-time World Series champion.
Watching Ohtani celebrate the Dodgers' victory over the New York Mets in the 2024 National League Championship Series, minority owner Todd Boehly reflected on the financial sacrifices he made to help the team.
"He wants to be the most amazing baseball player in the history of the world," Boehly said. "How do you do that? You win World Series. And how do you win World Series? You help figure out how to make the club that much better. He made the club that much better when he came to that decision."
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That same night, Walter said he felt the Dodgers "owed" it to Ohtani to help him reach the World Series.
The last two years, they have. Heading into spring training, they could be primed to do so again.
