Look away, Blue Jays fans: Shohei Ohtani just signed the biggest contract in pro sports history, and despite some dedicated flight tracking and internet sleuthing, it’s not with Toronto.
Driving the news: Baseball phenom Shohei Ohtani agreed to a 10-year US$700 million contract (not a typo) with the Los Angeles Dodgers over the weekend, the largest ever in professional sports history.
Why it matters: It’s an eye-popping sum, but there’s good reason to believe Ohtani will more than pay for himself thanks to the superstar's value as a marketing asset.
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Shohei not only puts people in seats; he also draws a global audience and marquee international sponsors.
- A study by one Japanese economist estimated that Ohtani's broad economic impact last season alone was around US$337 million.
Catch up: The Toronto Blue Jays were reportedly a finalist in the Shohei sweepstakes, and team owner Rogers had reportedly offered the star a contract in the US$500 million range.
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Experts predicted that Rogers' business would have seen an immediate boost from an Ohtani signing, driven by sponsorships, bigger broadcast deals, and pricier ad slots during games.
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When Ohtani-to-Toronto rumours were at their height Friday afternoon, tickets for the home opener in the nosebleeds were going for more than $200. They have since dropped to $53.
Big picture: Some agents and industry experts say the only fair comparison to Ohtani’s international star power is Taylor Swift.
- Ohtani’s brand is so big in Japan that there are currently 50 full-time Japanese reporters exclusively covering the ‘Shohei beat.’
Bottom line: Given Ohtani’s ability to bring eyeballs and money wherever he goes, the biggest contract in the history of professional sports could end up looking like a smart bet when all things are said and done.—LA