Record-Breaking Deal Overview
The largest sports contract ever in professional North American team sports is the 10-year, $700 million extension signed by Shohei Ohtani with the Los Angeles Dodgers in December 2023. The deal includes a fully guaranteed $700 million in total cash and a $680 million signing bonus, making it the highest-value guaranteed contract in major league history. Ohtani, a two-way player who both pitches and hits, is the first athlete to combine elite performance at both positions at the highest level of professional baseball.
The contract structure is designed to accommodate Ohtani's unique role, with a $2 million base salary for the 2024 season and the remaining compensation deferred until after the contract ends. This deferred payment model allows the Dodgers to manage the luxury tax while securing a generational talent. The agreement surpassed the previous largest sports contract ever, which was the 10-year, $660 million deal signed by outfielder Bryce Harper with the Philadelphia Phillies in 2019.
Contract Structure and Financial Impact
The financial terms of the Ohtani deal redefine how teams approach compensation for generational athletes. The $680 million signing bonus is paid upfront, while the $2 million annual salary is deferred until 2034, effectively creating a $700 million deferred compensation package. This structure allows the Dodgers to maintain a competitive payroll while committing to Ohtani for the remainder of his career.
The contract's total value of $700 million makes it the largest sports contract ever by total guaranteed money, exceeding the previous record held by Lionel Messi's $684 million deal with Al-Nassr in Saudi Arabia's professional soccer league. However, Messi's contract includes performance bonuses and a higher annual salary, making direct comparisons complex across different sports and leagues.
Deferred Payment Mechanics
The deferred payment structure in the Ohtani contract is a key factor in its record-breaking nature. The Dodgers will pay the $2 million base salary annually starting in 2034, with the final payment due in 2043. This allows the team to front-load the signing bonus while spreading the salary cost over a decade after the contract expires.
Luxury Tax Implications
By deferring the majority of Ohtani's salary, the Dodgers avoid immediate luxury tax penalties while still securing his services. The current collective bargaining agreement between Major League Baseball and the MLB Players Association sets a luxury tax threshold of $255 million for the 2024 season, with escalating penalties for repeated overages. The deferred structure helps the Dodgers remain compliant while building a competitive roster around Ohtani.
Historical Context and Comparisons
The largest sports contract ever in team sports history is now the Ohtani deal, but the landscape of athlete compensation has shifted dramatically in recent years. In the National Basketball Association, the largest contract is the 5-year, $272 million supermax extension signed by Damian Lillard with the Milwaukee Bucks in 2024, while in the National Football League, the largest is the 5-year, $275 million deal signed by quarterback Deshaun Watson with the Cleveland Browns in 2022.
In global soccer, the largest sports contract ever by total value remains the $700 million deal signed by Cristiano Ronaldo with Al-Nassr in 2023, which includes a $200 million annual salary. However, Ronaldo's contract is structured differently, with the full amount paid over the contract term rather than deferred, making the Ohtani deal the largest by guaranteed money in North American professional sports.
Global Comparison
The Ohtani contract's $700 million total value places it among the largest guaranteed deals in global sports history