How much are the LA Dodgers worth? Shohei Ohtani's $700,000,000 deal attracts focus to NL giant's financial resources

With the Los Angeles Dodgers committing to pay Shohei Ohtani $700 million, a lot of questions are being asked around the sporting world. Forgetting what 10 years of $68 million deferred annual payments means for the MLB landscape and potentially the state of California's tax revenue, it is valid to wonder if the team can afford this.

On the surface, it would appear that it can. Looking at the franchise's value and the ownership group, it can afford to spend $700 million on Ohtani, especially over a period of 20 years.

Forbes values the Dodgers franchise at $4.8 billion and the ownership group, Guggenheim Partners, has assets valued at around $325 billion. Their CEO, Mark Walter, is the controlling owner of the Dodgers and his net worth is estimated at $5.8 billion.

It is possible that while Ohtani draws $2 million per annum for the next 10 years, some economic crisis dramatically lowers the values of baseball franchises and Guggenheim, but it is unlikely. Baseball franchises are continuously becoming more valuable, up 12% this year according to Forbes, and that trend is expected to continue.

What Shohei Ohtani's deferred payments mean for his taxes and the MLB landscape

While this deal certainly works for the LA Dodgers in the present, as they can continue to build a roster to challenge for the World Series in 2024, it also works for Shohei Ohtani. While deferring $68 million per annum for 10 years seems counterintuitive for him, it isn't.

Ohtani is expected to garner around $50 million a year in endorsements and that number could continue to rise if the Dodgers win the World Series. Not only that, but the American tax system sees deferred payments as being earned when you receive them.

So if Ohtani were to move to a tax haven before his deferred payments begin (and he no longer plays in the MLB), he wouldn't have to pay tax on the 10 annual $68 million payments.

While the MLB world looks sideways at the Dodgers' attempt at a buy now, pay later dynasty, Shohei Ohtani might also be looking ahead. Given some examples of the dangers of deferred payments, such as the New York Mets' Bobby Bonilla deal, whether this will work out for the Dodgers remains to be seen.