LOS ANGELES (AP) — Shohei Ohtani could void his 10-year, $700 million contract with the Los Angeles Dodgers if neither key executive is back in charge, a person familiar with the agreement told The Associated Press on Wednesday.
Ohtani, who will be formally introduced by the Dodgers in a news conference on Thursday, will be allowed to terminate his deal if Mark Walter is no longer the controlling owner or president of baseball operations, and Andrew Friedman is no longer with the team, the person said. The person spoke on condition of anonymity because the terms had not been announced.
The Athletic first reported Wednesday that Ohtani’s deal contains a clause that allows him to opt out if the Dodgers make specific personnel changes.
The deal is still in the form of a letter of agreement between Ohtani’s representatives and the team, and a formal contract has not been submitted to Major League Baseball, the source said.
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Ohtani’s contract stipulates an annual salary of $70 million, and of the annual salary, $68 million is deferred without interest, paid in equal installments every July 1 from 2034 to 2043.
Ohtani will be introduced during a press conference at Dodger Stadium’s Centerfield Plaza beginning at 3 p.m. PT.
MLB reported Wednesday that Ohtani broke the homers’ record for Top selling jersey Within the first 48 hours of release, it was topped by soccer stars Lionel Messi and Cristiano Ronaldo. Ohtani was out of sight on the field Wednesday, meeting up with his teammates, including seven-time All-Star outfielder Mookie Betts and reliever Joe Kelly.
“I had the opportunity to talk to him,” said Kelly, surrounded by children attending an outdoor party with loud music. “He’s been working out already, really grinding, getting bigger and stronger. His arm looked good to me.”
Ohtani’s deal includes a full no-trade clause and provides a hotel suite for road trips, a luxury suite for home games and a full-time interpreter. Ohtani will donate to the Dodgers charity an amount not to exceed 1%.
Ohtani last spoke with reporters on Aug. 9, two weeks before he suffered a pitching injury that required surgery and will keep him off the mound until 2025. He underwent surgery on Sept. 19, but the nature of the surgery has not been fully announced. Ohtani had Tommy John surgery on October 1, 2018.
A unique two-way star as a hitter and pitcher, the 29-year-old left the Los Angeles Angels as a free agent after six years.
Kelly switches uniform numbers after completing his one-year, $8 million contract with the team on Monday, opening No. 17 for Ohtani, who thanked him for the gesture.
“I wouldn’t give it up to anyone,” Kelly said. “If Shohei continues to perform, he will become a member of the Hall of Fame in the future and I will be able to retire my number from the service. This is the closest I will get to the Hall of Fame.”
Asked what Ohtani would offer him in return, Kelly said: “Oh, there’s a list, but no comment.”
Ohtani spoke infrequently to the media during his years in Anaheim, leaving his teammates full of questions about the enigmatic star.
Kelly said he was willing to answer Ohtani’s questions “maybe once a week.”
Ohtani’s move from Anaheim to Hollywood led to an influx of fans on both sides of the Pacific to purchase Dodgers merchandise and inquire about tickets on the secondary market. The team has not yet started selling single-match tickets for next season.
“It will be sold out every game,” Kelly said. “Every game we participate in will be a playoff atmosphere.”
Before his 30th birthday on July 5, Ohtani had a .274 average with 171 homers, 437 RBI and 86 stolen bases as well as a 39-19 record with a 3.01 ERA and 608 strikeouts in 481 2/3 innings. Ohtani has a 34.7 wins above replacement (WAR), per Baseball Reference.
“I think all around it’s a good party for both parties,” Kelly said. “The Dodgers are competitive every year, and this is one of those things, he’s the highest-paid player in all of sports, and we’re still able to add to our team every year and he’s a Dodger.”
There are three different evaluations of the contract value in current dollars.
— For luxury tax purposes, a deduction rate of 4.43% is used and the value is $460,767,685. This is the mid-term federal rate as defined in Section 1274(d) of the Internal Revenue Code, using October 2023. This number means the Dodgers’ luxury tax payroll will be charged about $46.1 million annually for Ohtani.
— For MLB regular payroll purposes, a 10% discount rate is used and the value is $282,107,876. This is JPMorgan Chase’s prime interest rate plus 1%, rounded to the nearest whole percentage point, as defined in Article XV(k) of the Collective Bargaining Agreement.
The players union valued the contract at $437,830,563.
Bloom reported from New York.
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Los Angeles Dodgers’ fans could be facing another potential shakeup if executives Andrew Friedman and Dave Roberts lose their roles with the team. According to an AP source, star player Shohei Ohtani could opt out of his deal with the Dodgers if the front office undergoes changes. This news has added a new layer of uncertainty to the team’s future, as Ohtani’s presence has been crucial to their success in recent years. With the possibility of a major change in leadership, the Dodgers and their fans are left wondering about the implications for the team’s roster and performance.