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Ohtan's $2 million salary generated up to $100 million in revenues


caulfield12

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Or more than the entire White Sox 2025 organizational payroll...

https://www.latimes.com/sports/dodgers/story/2024-12-09/dodgers-shohei-ohtani-financial-impact-first-year

Turns out, that might have been low-balling the value.

In addition to the windfall of corporate sponsorship money, the Dodgers saw increases in ticket sales, merchandising and even tours of Dodger Stadium (the team has been told by Japanese tourism officials that more than 80% of people who visit Los Angeles from the country go to the ballpark during their trip).

As Ohtani helped the club to its first full-season World Series since 1988, officials noticed a renewed “buzz in the community,” as chief marketing officer Lon Rosen said, “that means more people are thinking about the Dodgers and buying more merchandise and more tickets and more hot dogs and more everything.”

While the team declined to disclose specific Ohtani-related revenue totals, some reports now estimate the player’s annual influence on the franchise to be in the nine-figure range. Tack on the investment opportunities his salary deferrals create, and the forecasts of him being a billion-dollar profit machine for the franchise seem on track.

“Because he helps create a winning culture, he makes business better,” Rosen said. “Whether it’s in sponsorship or merchandise or ticket sales. You name it, he does it.”

Edited by caulfield12
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"In the wake of Juan Soto's megadeal with Mets, Shohei Ohtani looks like quite the bargain"

It's estimated that the L.A. Dodgers earned nine figures worth of revenue from their new star in 2024.

 

"But as details trickled out, the agreement assumed a more complex sheen. A whopping $680 million — $68 million per season — would be deferred until the 10 years were up. Ohtani would take home just $2 million per season during his playing tenure with the Dodgers. The mammoth leftovers would be doled out later, from 2034 to 2043, in $68 million annual increments.

That abnormal structure lowered the present-day value of Ohtani’s contract from $700 million to somewhere in the $460 million range, depending on the rate of inflation. An outlandish sum, to be sure, but no longer an otherworldly, unprecedented figure.

And now, in the wake of Juan Soto’s landmark 15-year, $765 million deal with the New York Mets, Ohtani’s pact with the Dodgers looks like an epic bargain."

https://sports.yahoo.com/in-the-wake-of-juan-sotos-megadeal-with-mets-shohei-ohtani-looks-like-quite-the-bargain-195505431.html

Edited by caulfield12
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Shows you how backwards the White Sox thinking was not even considering him. Obviously a trillion to one that they could sign him, but JR doesn't understand, even though he had Michael Jordan, stars pay for themselves. It's the other fodder that burns you.

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They really need to think outside the box...it just makes sense financially that Japanese Korean and Taiwanese players can bring additional financial/advertising and marketing benefits from their home markets.

For example, HaSeong Kim is widely revered in South Korea and there's also a sizable Korean population in Chicagoland.

I'd rather take a shot with him in the $12-15 million range than Maldonado/Lopez/Clevinger, etc.

Sasaki is obvious...but probably for the Cubs.

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42 minutes ago, Dick Allen said:

Shows you how backwards the White Sox thinking was not even considering him. Obviously a trillion to one that they could sign him, but JR doesn't understand, even though he had Michael Jordan, stars pay for themselves. It's the other fodder that burns you.

Just like a full 1/4th of the increased WNBA 2024 revenues can be traced pretty directly to Caitlin Clark-onomics.

This was especially the case with Harper and the Sox...compared to Machado and Wheeler.

Heck, compared to Lindor and Soto, too.  Massive misunderstanding of his marketing appeal to a franchise without a real star since Frank Thomas. 

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4 hours ago, Dick Allen said:

Shows you how backwards the White Sox thinking was not even considering him. Obviously a trillion to one that they could sign him, but JR doesn't understand, even though he had Michael Jordan, stars pay for themselves. It's the other fodder that burns you.

How much more would the Sox bid have to be? 

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4 hours ago, Dick Allen said:

Shows you how backwards the White Sox thinking was not even considering him. Obviously a trillion to one that they could sign him, but JR doesn't understand, even though he had Michael Jordan, stars pay for themselves. It's the other fodder that burns you.

He didn't appreciate Jordan when he was here.  Couldn't move on from winning fast enough. 

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6 minutes ago, Texsox said:

How much more would the Sox bid have to be? 

There's an interesting thing to consider in that the Dodgers have a more direct across-the-ocean connection with a larger Japanese community in the area than Chicago, but at the same time Chicago is more centrally located in the US and hasn't had anyone like Ohtani in the area. He already had the LA area known to him through time with the Angels, so it's possible that new marketing opportunities would present themselves by going to Chicago. At the very least, I don't think there's a huge loss in endorsement money by leaving LA for Chicago.

Considering the deferments, an offer comparable to what the Dodgers gave him but without the deferments - maybe? 10/$600 is worth more than the face value of the Dodgers deal. Maybe that could actually get it done? He'd lose his playoff time this year but he wasn't pitching this year anyway.

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9 minutes ago, Texsox said:

How much more would the Sox bid have to be? 

Like i wrote, odds are, they never get Ohtani. Even the Cubs had no shot. But how about Harper? Totally worth his contract. Changes the narrative about the whole organization. Didn't even put out an effort. As long as JR is around, unless the Sox get really lucky and draft a star, they aren't signing one. 

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Deferring 680 million of 700m for ten years seems idiotic to me. He could be dead by then for all he knows. And who knows how that would be worth by then. He could be transferring that cash into assets now. Would have been better off taking a front loaded 300 million deal

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35 minutes ago, Dick Allen said:

Like i wrote, odds are, they never get Ohtani. Even the Cubs had no shot. But how about Harper? Totally worth his contract. Changes the narrative about the whole organization. Didn't even put out an effort. As long as JR is around, unless the Sox get really lucky and draft a star, they aren't signing one. 

I agree. I was wondering at what price would he have switched from a WS contender to the Sox? Double the contract doesn't seem unreasonable in his situation. 

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6 hours ago, Dick Allen said:

Shows you how backwards the White Sox thinking was not even considering him. Obviously a trillion to one that they could sign him, but JR doesn't understand, even though he had Michael Jordan, stars pay for themselves. It's the other fodder that burns you.

He never understood it.  He didn't want to pay MJ and famously said he would probably regret those deals.  JR is all about maximizing his and investors pockets.  Stupidly not realizing that if you spend money, you can truly make a ton more.  

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1 hour ago, Dick Allen said:

Like i wrote, odds are, they never get Ohtani. Even the Cubs had no shot. But how about Harper? Totally worth his contract. Changes the narrative about the whole organization. Didn't even put out an effort. As long as JR is around, unless the Sox get really lucky and draft a star, they aren't signing one. 

They did put out an effort.  JR didn't want to pay up.  But I do think Hahn tried with what he was working with.  I hate Hahn more than most on this board, so that's saying something.

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8 hours ago, Dick Allen said:

Shows you how backwards the White Sox thinking was not even considering him. Obviously a trillion to one that they could sign him, but JR doesn't understand, even though he had Michael Jordan, stars pay for themselves. It's the other fodder that burns you.

 

These mega deals for stars in their prime are steals, IMO, especially if you can lock in their salary for a decade-plus while salaries just continue to go up.  Machado, Harper, Ohtani, even Soto. Would sure be nice to add one at some point to anchor a rebuilt lineup but JR would have to die first.   

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3 hours ago, Dick Allen said:

Like i wrote, odds are, they never get Ohtani. Even the Cubs had no shot. But how about Harper? Totally worth his contract. Changes the narrative about the whole organization. Didn't even put out an effort. As long as JR is around, unless the Sox get really lucky and draft a star, they aren't signing one. 

 

And even if we get lucky and draft a star, they probably leave in FA anyway unless we manage to lock them up early.  

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