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Shohei Ohtani just signed the largest contract in the history of American professional sports. The superstar will earn an astonishing $700 million over 10 years. That translates to an otherworldly $70 million per season.
But not all of that goes to him. He's subject to loads of taxes and other fees that dilute the value. He'll be paid that $70 million, but not all of it will land in his account.
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Sports insider Andrew Petcash detailed just how much Ohtani will lose in taxes:
- $25.9M: Federal Tax
- $4.65M: California Tax
- $2.1M: Agent Fee
- $2.0M: Jock Tax
- $1.64M: FICA/Medicare
That takes his total down to about $33.5 million per season. That's still an incredible amount of money, but playing for the Los Angeles Dodgers certainly has its downsides.
While other players also have to pay taxes on their contracts, Ohtani's post-tax net income is similar to the AAV of Mike Trout ($35.5 million), Francisco Lindor ($34 million) and Carlos Correa ($33.3 million).
How does Shohei Ohtani's contract stack up?
Even though it's going to be heavily taxed, Shohei Ohtani's contract is a record-setting deal. No other deal in American sports history has been more expensive. Prior to Ohtani signing with the Dodgers, the most an MLB player made in a season was Justin Verlander and Max Scherzer earning $43.33 million.
The highest cumulative value was Mike Trout's $426.5 million deal, which blew Mookie Betts' $365 million deal out of the water. There are quite a lot of massive contracts in the MLB, and Ohtani's far outdoes all of them.
He makes more cumulatively than Aaron Judge and Austin Riley do combined. It's an impressive contract for one of the most talented players to ever step foot on a baseball field.
Ohtani can't pitch for the 2024 season, but he is worth a lot regardless. The Dodgers proved that by going higher than most estimates expected his next contract to be.
