What Is the Biggest Baseball Contract Ever
The biggest baseball contract ever is the 10-year, $360 million extension signed by Shohei Ohtani with the Los Angeles Dodgers in December 2023, which includes a full no-trade clause and covers the 2024 through 2033 seasons. The deal is widely reported as the largest guaranteed contract in North American sports history by total value and average annual value, surpassing prior records set in basketball and football. The contract structure reflects Ohtani's unique two-way value as both a pitcher and a hitter, with a significant portion of compensation tied to performance incentives and deferred payments structured to manage team salary cap space. For a detailed breakdown of the financial terms and how they compare to previous MLB deals, see the analysis from Forbes on Ohtani's record contract.
The agreement was announced after Ohtani opted out of his prior contract with the Los Angeles Angels, where he had already signed an eight-year, $70 million extension in 2019 that was widely viewed as a precursor to the record deal. The new contract immediately elevated Ohtani's average annual value to $36 million, setting a new benchmark for the biggest baseball contract ever in terms of yearly compensation. The Dodgers structured the deal to include deferred money paid beyond the contract's active years, a common tactic used to accommodate the largest contracts in professional sports while maintaining flexibility under the league's competitive balance tax rules.
How the Biggest Baseball Contract Ever Compares to Previous MLB Records
Before Ohtani's deal, the largest contract in MLB history was the 10-year, $330 million agreement signed by outfielder Mookie Betts with the Los Angeles Dodgers in 2020, which was itself a landmark at the time of signing. The second-largest contract was the 12-year, $330 million deal signed by pitcher Justin Verlander with the Houston Astros in 2023, highlighting how quickly the record for the biggest baseball contract ever has been broken in recent years. Overtaking these deals required a combination of elite two-way production, global marketability, and a team willing to commit unprecedented resources, all of which the Dodgers provided in their offer to Ohtani.
The financial scale of Ohtani's contract is further contextualized by comparing it to the largest deals in other major North American leagues, where supermax contracts in the NBA and NFL have approached but generally not exceeded the total value of this agreement. The average annual value of $36 million surpasses the previous MLB record held by Betts and places Ohtani ahead of stars such as Max Scherzer, Mike Trout, and Fernando Tatis Jr. in terms of yearly compensation. For a broader look at how this contract fits into the landscape of the highest-paid athletes across all sports, the ESPN contract analysis provides a useful comparison.
Key Contract Details and Structure of the Biggest Baseball Contract Ever
The contract includes a full no-trade clause, giving Ohtani control over any potential future moves, which is a standard feature in the largest free-agent deals but still relatively rare for players with his level of on-field impact. A significant portion of the total value is structured through deferred payments, with the Dodgers planning to defer roughly $68 million of the contract beyond the 2033 active period, a strategy that helps the team manage its luxury tax obligations while still delivering record compensation to the player. The deal also contains performance incentives tied to statistical milestones, though the core guarantee of $360 million over 10 years is what solidifies its position as the biggest baseball contract ever in terms of guaranteed money.
The structure of the contract reflects the Dodgers' broader financial approach under owner Todd Boehly's ownership group, which has pursued a high-spending model built on global brand building and the aggregation of elite talent across multiple sports properties. The team's ability to offer such a record deal is supported by a combination of