Shohei Ohtani vs. Juan Soto? Analyzing who received a better deal, deferred sum, present-value, signing bonus.
Juan Soto and the New York Mets sent shockwaves after agreeing a record 15-year, $765 million contract, which includes an additional $75 million signing bonus.
The outfielder's contract has an opt-out in place after the 2029 season. If the Mets want to nullify it, they would need to boost his AAV from $51 million to $55 million for the remaining 10 years of his contract.
Soto's contract surpasses Los Angeles Dodgers star Shohei Ohtani's 10-year, $700 million contract signed last year deal with the Los Angeles Dodgers is the largest in sports history that time.
Juan Soto vs Shohei Ohtani contract comparison details
#1 Contract Length
Shohei Ohtani: 10 years (2024-2033) initially, with a large (97.1%) deferred payout from 2034-2043. Effective length: 20 years considering deferred payments.
Juan Soto: 15 years (2024-2038), potentially worth more if the opt-out clause conditions are met.
#2 Total Value
Ohtani: $700 million guaranteed
Juan Soto: $765 million guaranteed, increasing to $805 million if opt-out conditions are voided
#3 Annual Average Value (AAV)
Ohtani: Luxury tax AAV: $46 million. Payment schedule: $2 million annually (2024-2033) and $68 million annually (2034-2043)
Soto: AAV without adjustment: $51 million. AAV with opt-out void: $53.66 million
#4 Present Value of Future Payments
Ohtani: Present value of deferred $68 million (2034 onwards): $44 million (discounted at 4.43%).
The total present value is significantly lower than the $700 million nominal amount due to deferred payments.
The total present value is significantly lower than the $700 million nominal amount due to deferred payments.
Juan Soto: No deferred money means the nominal value closely matches the present value ($765million).
#5 Signing Bonus
Ohtani: None
Soto: $75 million signing bonus, paid up front
#6 Deferred Payments
Ohtani: Significant. Deferred payments dominate the second half of his contract (2034-2043), which reduces the Dodgers; short-term financial burden.
Soto: None. All payments are structured within the 15-year period
#7 Luxury Tax Impact
Ohtani: Counts $46 million annually toward the Dodgers’ luxury tax
Soto: Counts $51 million annually (or $53.66 million if opt-out is voided) toward the Mets’ luxury tax
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