How does Shohei Ohtani's $700,000,000 deal compare to Lionel Messi's reported contract? Comparing the fortunes of two icons

The former LA Angels star Shohei Ohtani is now headed crosstown to the LA Dodgers after the two-way phenom signed a blockbuster deal, setting a new benchmark in professional sports. The AL Most Valuable Player signed a 10-year, $700 million contract, surpassing the previous best contract across sports.

Argentinian football star Lionel Messi is one of the highest-earning athletes in the world. The football star signed a four-year, $674 million deal with FC Barcelona in 2017. Moreover, he was also reportedly offered around €500 million (£435m/$541m) from the Saudi League, but he rejected the offer.

Instead, he signed a contract with Inter Miami in July that reportedly pays him close to $60 million per year, including his salary, ownership stake in Inter Miami and signing bonus.

The previous best signing in the MLB was of Mike Trout, who signed a 12-year, $426.5 million contract in 2019 with the Los Angeles Angels.

Ohtani's contract value surpasses the combined contract values of Bryce Harper (13 years, $330 million) and Aaron Judge (nine years, $360 million).

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Shohei Ohtani's contract value has deferrals

There are a lot of deferrals in Shohei Ohtani's contract that may have gone unnoticed by fans. ESPN analyst Jeff Passan dug into the specifics of his contract, which will represent itts true value.

According to Passan, MLB deferrals are discounted when determining the amount teams are charged under the competitive balance tax accounting system.

Therefore, Ohtani's contract is projected to cost between $40-50 million per year, rather than the $70 million per year a straight contract would.

The Dodgers are going to pay him $700 million in the next decade, but as a rule of thumb, its value will dwindle over time.

Money tomorrow is far more valuable than money today and with inflation, its value will not remain same.