Massive deal puts Shohei Ohtani in orbit with other global phenomenons

Shohei Ohtani has set a financial record to go along with his singular on-field performance, getting $700 million to make a 30-mile move up Interstate 5 to the Los Angeles Dodgers.

His agent, Nez Balelo, issued a news release Dec. 9 announcing the 10-year contract, ending months of speculation that began even before Mr. Ohtani became a free agent on Nov. 2.

“This is a unique, historic contract for a unique, historic player,” Mr. Balelo said. “He is excited to begin this partnership, and he structured his contract to reflect a true commitment from both sides to long-term success.”

Mr. Ohtani has redefined modern baseball since he chose the Los Angeles Angels as his first major league team. Nobody has come close to matching his achievements at the plate and on the mound, becoming one of the majors’ elite players in both roles when healthy. Along the way, he has become one of the most marketable athletes in the world, a force when it comes to ticket sales, TV ratings, and sponsorship revenue.

He was a unanimous American League MVP in 2021 and 2023 – he finished second in 2022 – winning this year despite injuring his elbow in late August and an oblique muscle in early September.

After winning the MVP award in the World Baseball Classic last March while leading Japan to victory – he struck out Angels teammate Mike Trout to end the tournament – Mr. Ohtani maintained his two-way magnificence this year, hitting 44 homers while pitching to a 3.14 earned run average (ERA) before tearing his elbow ligament again on Aug. 23. He didn’t hit after Sept. 3 because of the strained right oblique.

Mr. Ohtani’s total was 64% higher than baseball’s previous record, a $426.5 million, 12-year deal for Mr. Trout that began in 2019. His average annual salary nearly doubles the roughly $42.3 million he earned with the Angels.

His agreement includes unprecedented deferred money that will lower the amount it counts toward the Dodgers’ luxury tax payroll, a person familiar with the agreement told The Associated Press. The person spoke on condition of anonymity because the details were not announced.

Mr. Ohtani’s transcendent success has come with a significant damper: He has never made the playoffs or even played on a winning team in the majors. Owner Arte Moreno’s Angels haven’t won more than 80 games or finished higher than third in the AL West during his tenure alongside Mr. Trout, a three-time AL MVP, and a perennially disappointing cast of supporting players. But the Halos won Mr. Ohtani’s services in late 2017 partly by promising him the freedom to train and to play however he wanted.

This is perhaps the largest contract in sports history, topping highs believed to be set by soccer stars Lionel Messi and Kylian Mbappé.

In terms of his marketability, experts point to another name.

The real comparison? Try Taylor Swift.

The global music sensation’s broad appeal – one that bridges the gap between generations and expands to other countries – is an extremely rare phenomenon that Mr. Ohtani shares. There’s no doubt the Dodgers hope they can leverage the Japanese star’s arrival into even more money for a franchise that is already one of the most popular in Major League Baseball.

“He’s rocketed into a stratosphere all his own,” sports agent Leigh Steinberg said.

Mr. Ohtani was expected to sign the biggest deal in MLB history as a free agent this offseason and didn’t disappoint. Though he won’t be able to pitch in 2024 following Tommy John surgery, he should provide plenty of value at the plate before he returns to the mound in 2025.

But the $700 million price tag was more than most imagined.

The reason the Dodgers made that kind of commitment is simple: It’s probably worth it. Not just because he could help win World Series, but because of the value he brings even if he doesn’t.

“If Ohtani is marketed right, he’s a globally iconic player,” said Mike Lewis, a professor of marketing at Emory University who specializes in sports business. “It could be like something from Formula One, where you’ve got the attention of the whole world. Baseball has sometimes struggled to gain national attention, but he’s the kind of guy who attracts millions of eyeballs, and not just from the U.S.”

The Dodgers haven’t had trouble attracting eyeballs over the past several years. They’re a perennially successful franchise – winning the NL West 10 of the past 11 seasons and the World Series in 2020 – and averaged more than 47,000 fans per game last year, best in the sport. They’ve doled out big money to stars like Freddie Freeman, Mookie Betts, and Clayton Kershaw.

But nothing compares to Mr. Ohtani.

Mr. Lewis, the Emory professor, said the spike in interest could be comparable to Major League Soccer’s Inter Miami, which saw a massive jump in online interaction, particularly on Instagram, after Mr. Messi signed.

As of Dec. 10, the Dodgers’ Instagram account had 3.2 million followers. Mr. Ohtani on his own has 6.3 million.

That’s just the tip of the iceberg. The average fan understands that Mr. Ohtani will generate revenue with more tickets, concessions, and jerseys sold.

But no player drives more interest internationally, especially in Mr. Ohtani’s native Japan, with a baseball-obsessed population of 126 million. Mr. Ohtani already has a deep group of sponsors targeting audiences on both sides of the Pacific Ocean, including New Balance, ASICS, and Porsche Japan.

For the Dodgers, his international appeal means more companies in the U.S. and abroad are interested in advertising – Japanese companies frequently paid for prime ad spaces around Angel Stadium when Mr. Ohtani was in Anaheim. That alone brings a cascade of cash that could pay off a significant portion of Mr. Ohtani’s deal.

For the creative folks in the advertising industry, the possibilities are almost endless.

That’s where the Swift comparisons come into play.

Ms. Swift was a dominant force in 2023, partly because of “The Eras Tour” that sold out shows from coast to coast. But then she took it to the next level, developing a film of that tour that brought in millions of more fans to theaters throughout the country. Fans obsess over her every move on social media, including her budding romance with NFL star Travis Kelce.

Mr. Ohtani is potentially the same type of superstar. His free agency generated the sort of online sleuthing and hysteria usually associated with the Swifties, with fans frantically tracking private plane movements and alleged sightings trying ascertain which of his suitors would land him. Like Ms. Swift, Mr. Ohtani also starred a documentary this year – his was produced by ESPN.

There’s also the fact that among athletes, he’s fairly low risk. He hasn’t had a hint of controversy through his career, producing a squeaky clean image that any potential advertiser can get behind. In fact, fans know surprisingly little about his personal life – something that only seems to add intrigue.

Mr. Steinberg, the retired agent, said that he’s certain every MLB team interested in Mr. Ohtani did a revenue forecast to estimate the amount of money he would generate, even before he touches the field. If the Dodgers were willing to pay $700 million to land him, he’s confident they did their homework.

Monster homers. Potential dominance on the mound. It’s a Hollywood script that the Dodgers are hoping comes true.

“He’s handsome and he’s a huge box office draw,” Mr. Steinberg said. “There are very few players who can match that. He has appeal to all.”

This story was reported by The Associated Press. David Brandt contributed from Phoenix.