Sign at the entrance to Dodger Stadium in Los Angeles

A Unique, Record-Setting Contract for the Biggest Name in Baseball

BY ANNE KORP

December 13, 2023

The biggest name in Major League Baseball has made his decision. Shohei Ohtani, the reigning American League Most Valuable Player, has signed with the Los Angeles Dodgers for $700 million over 10 years.

The contract is record setting in its size and, as more details become available, also rather unique. Of the $70 million he will be paid per year, Ohtani will defer $68 million until after the completion of the contract.

Sports economist and professor in Drexel University’s LeBow College of Business, Joel Maxcy, PhD shared his insight into the record-setting contract of the biggest name in baseball and the unique structure of MLB deferred salary contracts.

Read Maxcy’s Q&A on Drexel News Blog.

Related Stories

Will Major League Baseball Be Able to Play in 2020?

Joel Maxcy, PhD, professor of sport management, addresses conflict between Major League Baseball and its players union on playing the 2020 season.

The Issues Behind Major League Baseball's Labor Stoppage

Professor of Sport Business Joel Maxcy, PhD, addresses what the MLB and its players union disagree on and the likelihood of a lockout or strike later this year.

Why Pay for a Professional Sports Team's Stadium?

Joel Maxcy, PhD, professor of sport business, shares insight into the actual local economic impact of a professional sports team.