Shohei Ohtani’s $700 Million Contract: A Benchmark for Juan Soto’s Upcoming Free Agency

Shohei Ohtani‘s landmark 10-year, $700 million contract with the Los Angeles Dodgers, signed last year, has set a new standard in baseball. This deal, which averages $70 million per year, includes significant deferrals that reduce Ohtani’s present-day annual average value (AAV) to $43.8 million.

Ohtani’s contract is notable not only for its total value but also for its unique structure. A substantial portion of the contract is deferred until the 2030s, a strategy that allowed the Dodgers to maintain financial flexibility to sign other players, such as Yamamoto. This approach was largely driven by Ohtani’s significant endorsement earnings, which reduce his reliance on the contract’s immediate financial value.

The deferral of Ohtani’s contract has sparked discussions about whether other players, like Juan Soto, would consider similar arrangements. However, given Soto’s different financial situation and his history of rejecting large contract extensions, it is unlikely he will accept a heavily deferred contract. Soto, who has turned down offers such as a 15-year, $440 million contract from the Washington Nationals, is expected to seek a contract with a higher present-day value.

Soto’s impending free agency is anticipated to be one of the most watched stories of the offseason, with teams like the New York Yankees, New York Mets, and Los Angeles Dodgers likely to be in the running. Projections suggest Soto could sign a deal worth over $500 million, potentially nearing or even surpassing $600 million over 10-12 years.