The Los Angeles Dodgers are in the midst of a historic offseason, signing two of the most highly regarded free agents of all time in Shohei Ohtani and Yoshinobu Yamamoto.
To sign both, the Dodgers committed more than $1 billion over the next 12 years, with Ohtani signing for 10 years, $700 million, while Yamamoto signed for a 12-year, $325 million contract agreed, in addition to which a brokerage fee was incurred, a total of another 50.6 million US dollars.
They faced strong competition from opposing teams for both players, with the Toronto Blue Jays and San Francisco Giants offering Ohtani the same terms he received from the Dodgers. However, Ohtani made the decision to ultimately join the Dodgers because they had a chance to win both now and in the future.
As for Yamamoto, the New York Yankees offered him the highest average annual value, along with more upfront money and a quicker release clause than the Dodgers. The New York Mets made the same financial offer as the Dodgers.
However, the Dodgers were able to acquire the coveted pitcher due to his desire to play for LA and rejoin Ohtani, they say MLB Network's JP Morosi:
“A source who knows the Japanese baseball scene very well told me that Yamamoto just wanted to be a Dodger and play with Ohtani, in no particular order.”
Yamamoto grew up a Dodgers fan, so it's no surprise that he wanted to pitch for his childhood team. He also has the added benefit of being the ace of a perennial World Series contender who has good future prospects, while the Mets and Yankees are both coming off poor seasons with less certainty about their future.
In their negotiations, the Mets reportedly tried to use playing alongside Ohtani as a disadvantage for Yamamoto.
Ohtani was part of the Dodgers' meeting with Yamamoto at Dodger Stadium, and it was reported that the two-way star made a big impression.
Yamamoto and Ohtani were teammates on Team Japan during the 2023 World Baseball Classic, where they celebrated victory by defeating the United States and winning the gold medal. The two also developed a good relationship while competing in the international tournament, and now they're teaming up again in LA to win another championship together.
Shohei Ohtani and Yoshinobu Yamamoto have contracts with the Dodgers
Both players received unique, record-breaking contracts from the Dodgers, but took different paths to get there.
Ohtani had deferred $680 million of his salary, reducing the current value of the deal to an estimated $460 million due to inflation. This allowed the Dodgers to pay him just $2 million per season over the life of his contract, and his competitive net tax salary dropped to about $46 million, allowing the team to continue spending money.
Despite the postponements, the $700 million is the highest guaranteed amount in professional sports history.
Yamamoto's deal was more straightforward because there was no money deferred, but a 12-year contract is the longest contract given to a pitcher in MLB history. Yamamoto's $325 million also set the record for the largest guarantee for a pitcher ever, surpassing Gerrit Cole's total by $1 million.
Yamamoto also received two opt-outs as part of the deal, one after his sixth season and another after his eighth, as well as a contract that will vest, which also benefits the Dodgers.
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