Last updated on December 16th, 2023 at 01:00 pm
The baseball world, nay, the sports world was shocked when news started to spread about Shohei Ohtani and his $700 Million contract. Not just because he will be signing with the Dodgers, but because of the very, very pricey amount of this contract, and the finer details of the actual contract. As a bookie using the best sportsbook pay per head software, wherever Ohtani plays is a huge factor in sports handicapping, so you need to know these things.
Let us break down the contract to understand everything. First up, who are in the contract. Ohtani will be signing with the Los Angeles Dodgers. The contract is worth $700 million. This is the largest sports contract in history- even higher than Lionel Messi’s $673 million contract with FC Barcelona. The deal covers a 10 year period. In baseball, the largest contract before this belongs to Mike Trout, signing for the Angels to the tune of $426.5 million.
Details on Shohei Ohtani and His $700 Million Contract
Now, sports contracts can be quite complex. To compare, your fees for your pay per head service are set for each player you have each week. It is very straightforward and easy to understand. Other sports contracts are similar in a way that they are simple. If the contract says 10 years for $700 million, then you divide it to Ohtani earning $70 million a year, right?
No. This contract is also unique because this is the first time we are seeing a deferral of this scale. In fact, Ohtani will only be paid $2 million a year. There will be $68 million each year deferred until the end of his contract. This will be paid out- without interest- until around 2034-2043. Why would he agree to do this? The answer is quite simple as well.
When managing your sportsbook through your online bookie software, you will notice the roster of the teams. You will also note the star power each team has. The Dodgers have quite a few of them under the team alongside Ohtani. You have Mookie Betts and Freddie Freeman, both who also have deferments in their respective contracts. While the Dodgers will still have to spend on the CBT, or the Competitive Balance Tax, they still get more room to spend for their roster.
