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Shohei Ohtani

Ohtani’s Former Interpreter Charged With Bank Fraud Due To Theft Of Over $16MM

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April 12: Mizuhara surrendered to federal authorities this morning, per Alden González of ESPN. González adds that Mizuhara is scheduled to appear in court at 1:00 p.m. Pacific, or 3:00 p.m. Central, with the expected outcome of being let out on bond at some point.

April 11: U.S. attorney Martin Estrada announced today that Shohei Ohtani’s former interpreter Ippei Mizuhara has been charged with bank fraud to finance a “voracious appetite for illegal sports betting,” per Sam Blum of The Athletic. Mizuhara is alleged to have transferred more than $16MM from Ohtani’s account to an illegal sports book, per Alden González of ESPN. The full 37-page complaint against Mizuhara was relayed by Meghann Cuniff of The Washington Post.

Per Blum, Estrada says the account was set up by Mizuhara in 2018 and he began illegal gambling in 2021. “The bets do not appear to have been made on the sport of baseball,” Estrada says. “At this point Mr. Ohtani is considered a victim in this case,” Estrada added, per Fabian Ardaya of The Athletic. “Mr. Mizuhara lied to the bank to access the account … lied to them about being Mr. Ohtani,” Estrada also said, per Bill Shaikin of the Los Angeles Times. When Mizuhara won a bet, the winnings would go into his own account and not Ohtani’s, per Blum. Estrada says investigators have viewed text messages from Mizuhara where he admitted to stealing from Ohtani, as relayed by Ardaya.

Last month, ESPN reported that more than $4.5MM had been wired from an account in Ohtani’s name to a sports gambling ring in California, where betting on sports is illegal. Mizuhara initially told ESPN that he was the one who racked up the debt but that Ohtani wired the money to help him pay it off. He later retracted that story and said Ohtani knew nothing about the gambling or the wire transfers. Ohtani later spoke on the matter, accusing Mizuhara of stealing money from him and lying about it, saying that he didn’t find out any of the details until the reporting had come out.

Both Mizuhara and Ohtani have said that Ohtani did not place any bets. Mizuhara has said that he did not bet on baseball and there’s not yet been any reporting to contradict that. As relayed by Jayson Stark of The Athletic, Mizuhara is alleged to have made about 19,000 wagers from December of 2021 to January of 2024, winning $142.27MM but losing $182.94MM for a net loss of $40.7MM.

It was reported last night that Mizuhara was in negotiations with federal authorities about pleading guilty. As part of that reporting, it was relayed that prosecutors had evidence Mizuhara disabled notifications that Ohtani would have received from his bank about transactions. The details from today go even farther, alleging that Mizuhara called the bank and impersonated Ohtani to access funds, per Britt Ghiroli of The Athletic. He answered security questions related to Ohtani’s biographical information to wire funds to a bookmaker, saying it was for a car loan. Per Shaikin, Ohtani’s agent repeatedly asked about the account but Mizuhara told him it was “private” and that Ohtani didn’t want anyone else to monitor it.

Shaikin relays a text message exchange between Mizuhara and a bookmaker where he admits to the theft: “Technically I did steal from him. it’s all over for me.” The maximum penalty for these charges is 30 years, per Shaikin. Mizuhara will appear in federal court in the coming days, per Blum. Ohtani has cooperated fully in the investigation, per Shaikin, including providing access to digital devices.

MLB issued a statement on the matter, per Jesse Rogers of ESPN and others: “We are aware of the charges filed by the U.S. Attorney’s Office against Mr. Mizuhara for bank fraud after a thorough federal investigation. According to that investigation, Shohei Ohtani is considered a victim of fraud and there is no evidence that he authorized betting with an illegal bookmaker. Further, the investigation did not find any betting on baseball by Mr. Mizuhara. Given the information disclosed today, and other information we have already collected, we will wait until resolution of the criminal proceeding to determine whether further investigation is warranted.” MLB’s Department of Investigations (DOI) opened an investigation into the matter last month after the initial reports came out.

MLBTR Podcast: Reviewing Our Free Agent Predictions And Future CBA Issues

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The latest episode of the MLB Trade Rumors Podcast is now live on Spotify, Apple Podcasts, and wherever you get your podcasts! Make sure you subscribe as well! You can also use the player at this link to listen, if you don’t use Spotify or Apple for podcasts.

This week, host Darragh McDonald is joined by Tim Dierkes, Steve Adams and Anthony Franco of MLB Trade Rumors to discuss…

  • Why did the 2023-24 offseason play out the way that it did? Was the slow offseason a trend or a blip? Looking at competitive balance tax and TV revenue issues. (2:40)
  • The decision between a middleground deal versus a short-term deal, focusing on Cody Bellinger of the Cubs but also other players who didn’t get the huge offers they were expecting (20:00)
  • There were very few long deals this winter, so can we glean anything about the trend of extending contracts to lower the average annual value? (34:50)
  • Why did we project big contracts for players with clear warts? (42:10)
  • Is the middle tier of the free agent market dying? (45:15)
  • With the next CBA negotiations coming after 2026, how will the players respond to recent events? (50:20)
  • Are the owners divided, with rich and poor teams getting pushed apart by the collapse of TV revenue streams? (59:05)
  • Is deferred money a real problem and is there any motivation to change the rules? (1:02:40)
  • Does MLB need more parity and what are the best ways to do it? (1:09:30)
  • Was Shohei Ohtani’s deferred money an extreme outlier or is it still a concerning trend? (1:13:10)
  • Will there be another lockout after 2026? (01:19:35)

Check out our past episodes!

The podcast intro and outro song “So Long” is provided courtesy of the band Showoff.  Check out their Facebook page here!

Report: Ohtani’s Former Interpreter Ippei Mizuhara Negotiating Guilty Plea For Theft

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Shohei Ohtani’s former interpreter Ippei Mizuhara is in negotiations with federal investigators about pleading guilty to charges of stealing from Ohtani’s bank account, according to a report from Tim Arango and Michael S. Schmidt of the New York Times. Ohtani has publicly accused Mizuhara — a longtime friend — of stealing from his accounts to pay off gambling debts which the interpreter had accrued.

A few weeks ago, ESPN reported that more than $4.5MM had been wired from Ohtani’s account to an illegal bookmaker in Southern California. The New York Times now reports that federal prosecutors have found evidence indicating that Mizuhara siphoned more than that initially reported $4.5MM figure, in part by disabling notifications that Ohtani would have received from his bank about account transactions.

The gambling debts first became public in late March while the Dodgers were playing the Padres in South Korea. Initially, Mizuhara told ESPN that Ohtani had wired the money to the bookmaker to cover the debt. Mizuhara subsequently retracted that statement, telling ESPN the next day that Ohtani had been unaware of the entire situation. The two-time MVP said the same, releasing a statement accusing Mizuhara of stealing the money and referring the matter to the authorities.

Both Ohtani and Mizuhara have stated that the two-way star did not place any bets. Mizuhara indicated that the bets were his alone but denied that he ever placed a bet related to baseball.

Tonight’s report from Arango and Schmidt adds context to the conflicting stories. According to the New York Times, Mizuhara and Ohtani’s agent, Nez Balelo of CAA, initially tried to manage the public relations fallout without informing Ohtani. The Times writes that Mizuhara first told Balelo that Ohtani had covered debts for an unnamed teammate. He then changed his story and admitted the debts were his own but still claimed that Ohtani agreed to pay them, which is the version of events he initially told ESPN.

According to the Times report, Mizuhara then provided that same account when speaking in English to the L.A. clubhouse. Ohtani, who was present for that clubhouse address, told reporters two weeks ago that he confronted his friend thereafter. At that point, according to Ohtani, Mizuhara admitted that he had stolen the money. The Dodgers fired him at that point.

The version of events laid out in the Times report aligns with Ohtani’s public declaration that he was unaware of Mizuhara’s activities and played no role in the gambling scheme. Of course, neither the legal process nor MLB’s investigation have been completed. Neither the U.S. attorney’s office nor anyone from MLB has commented publicly since Ohtani’s statement on March 25. Arango and Schmidt report that Ohtani has met with authorities in recent weeks.

MLBTR Podcast: A Live Reaction To The Jordan Montgomery Signing, Ohtani’s Interpreter, And J.D. Martinez Joins The Mets

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The latest episode of the MLB Trade Rumors Podcast is now live on Spotify, Apple Podcasts, and wherever you get your podcasts! Make sure you subscribe as well! You can also use the player at this link to listen, if you don’t use Spotify or Apple for podcasts.

This week, host Darragh McDonald is joined by Steve Adams of MLB Trade Rumors to discuss…

Plus, we answer your questions, including…

  • Luis García Jr, Lance McCullers Jr, and Kendall Graveman of the Astros are likely out, at the very least, until mid-June.  How come none of these guys are on the 60-day injured list?  Do you seen the Astros moving them there and if so, when? (49:15)
  • Do you think it’s possible that the league begins to follow the Angels and Rangers footsteps and call up recent draft picks as soon as they show any signs of potential? Also, do you think it is at all possible that teams start to call up teenagers? (52:25)

Check out our past episodes!

The podcast intro and outro song “So Long” is provided courtesy of the band Showoff.  Check out their Facebook page here!

Shohei Ohtani Reads Statement In Relation To Former Interpreter

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Star two-way player Shohei Ohtani of the Dodgers read a statement today in relation to Ippei Mizuhara, his former interpreter and friend. Mizuhara was fired last week amid his involvement with an illegal sports gambling operation.

Ohtani read the statement in Japanese, which was translated into English by Will Ireton, for a period of about 12 minutes. Video of the full thing was relayed by Talkin’ Baseball on X. Chad Jennings of The Athletic transcribed all of Ohtani’s comments, as translated into English by Ireton.

Fabian Ardaya of The Athletic was among those to relay a few days ago that Ireton would be serving as a translator for Ohtani in the wake of Mizuhara’s departure. Ireton served as Kenta Maeda’s translator when he was with the Dodgers and Ireton stayed an employee of the club after Maeda was traded to the Twins in 2020.

Reporting last week highlighted that over $4.5MM had been wired from an account in Ohtani’s name to the gambling ring. Mizuhara said that he racked up that debt by betting on sports other than baseball, then Ohtani wired the money to help him pay it off. Later, Ohtani’s attorneys contradicted the story, saying that Ohtani “had been the victim of a massive theft.” Ohtani’s version of events that he relayed today aligned with the theft story, accusing Mizuhara of using his account to wire the money and then lying about it.

Ohtani said that he was “saddened and shocked that someone who I trusted has done this.” Ohtani stated that he has never bet on baseball or any other sports and has never gone through a bookmaker to bet on sports. “Up until a couple days ago, I didn’t know this was happening.” He also flatly denied the original version of events, wherein he supposedly sent the money to help his friend Mizuhara. “Ippei has been stealing money from my account and has told lies.”

The Dodgers were in Korea last week to play the Padres as part of the Seoul Series as the initial reporting on the story was coming to light. Ohtani stated today that the media in Korea inquired about the story but Ippei never told him about the media inquiry. Ippei then told the media and Ohtani’s representatives the version of events that involved Ohtani paying off the debt. “All of this has been a complete lie,” Ohtani said.

Ohtani says he first found out about Mizuhara’s gambling after the first game of the Seoul Series, when there was a team meeting in the clubhouse. “During the team meeting, obviously, Ippei was speaking English and I didn’t have a translator on my side. But even with that, I kind of understood what was going on and started to feel that there was something amiss.” Ohtani then states that he did not know until that meeting about Mizuhara’s gambling addiction or his debt. “Obviously, I never agreed to pay off the debt or make payments to the bookmaker.”

Ohtani then states that he and Mizuhara met one-on-one in a hotel room after the team meeting. “Ippei admitted that he was sending money, using my account, to the bookmaker.” Ohtani states he contacted his representatives at that point. “When I was finally able to talk to my representatives, that’s when my representatives found out that Ippei has been lying the whole time and that’s when I started contacting the Dodgers and my lawyers.” Ohtani states that his representatives and the Dodgers found out at that point that they were being lied to.

“My lawyers recommended that, since this is theft and fraud, that we have the proper authorities handle this matter.” He concluded by saying that “The season’s going to start so I’m obviously going to let my lawyers handle matters from here on out and I am completely assisting in all investigations that are taking place right now. I’m looking forward to focusing on the season. I’m glad that we had this opportunity to talk and I’m sure there will be continuing investigations moving forward. Thank you very much.”

On Friday, MLB announced that it its department of investigations formally began the process of investigating the matter. This is a developing story that will be updated as more information comes to light.

MLB Opens Investigation Into Allegations Involving Shohei Ohtani, Ippei Mizuhara

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Major League Baseball issued a statement today, which reads as follows: “Major League Baseball has been gathering information since we learned about the allegations involving Shohei Ohtani and Ippei Mizuhari [sic] from the news media. Earlier today, our Department of Investigations (DOI) began their formal process investigating the matter.”

Mizuhara, Ohtani’s long-time interpreter and friend, was fired by the Dodgers on Wednesday. Reports had emerged which connected Mizuhara to an illegal gambling operation in California, where sports betting is not legal. Per those reports, over $4.5MM was wired from an account in Ohtani’s name to the gambling ring. Mizuhara and a spokesperson for Ohtani initially told ESPN that the debts were Mizuhara’s and Ohtani sent the money to help his friend pay them off. But attorneys representing Ohtani later claimed that the player had been “the victim of a massive theft.”

The league opening an investigation was inevitable. Even if Mizuhara was the only one involved, there would be serious grounds for concern. All MLB players and employees are prohibited from betting on baseball, given their access to information that may not be public. They can bet on sports other than baseball and Mizuhara insists that he never did bet on baseball, but the connection to an illegal operation under federal investigation makes it a different matter.

The fact that the sport’s biggest star is involved only gives the league further grounds to look into it. To this point, there’s been nothing to suggest that Ohtani himself did any betting. Per the initial reporting from earlier this week, multiple sources asserted that Ohtani does not gamble. But multiple wire transfers in his name to an illegal operation under federal investigation was clearly going to be grounds for the league to take a look. As recently pointed out by Craig Calcaterra at Cup of Coffee, Ohtani may have violated federal laws and/or league rules just by wiring the money, even if he did no gambling whatsoever.

Per T.J. Quinn of ESPN, the league is expected to request interviews with all parties, including both Ohtani and Mizuhara, though “officials will have no way to compel Mizuhara’s cooperation since he no longer works for baseball.” Quinn adds that Ohtani will have a right to refuse as a member of the MLBPA.

In terms of organizations outside the league, Quinn adds that neither the California Bureau of Investigation nor the FBI are investigating. Stephen Wade, Tong-Hyung Kim and Stefanie Dazio of The Associated Press reported earlier today that Mizuhara is being criminally investigated by the IRS.

Ohtani’s Interpreter Fired; Accused Of Theft And Illegal Gambling

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On Wednesday evening, the Dodgers announced they’d fired Ippei Mizuhara, who was working as Shohei Ohtani’s personal interpreter. Mizuhara has been Ohtani’s friend and interpreter dating back to before his signing with the Angels in 2017.

Gustavo Arellano, Adam Elmahrek, Nathan Fenno and Paul Pringle of the Los Angeles Times first reported the news, which comes amidst a probe into an alleged illegal gambling operation in Southern California. Attorneys for Ohtani told the L.A. Times that the two-way star “had been the victim of a massive theft.” While that statement did not specify who had committed that alleged theft, the evident implication is that Mizuhara did so.

ESPN’s Tisha Thompson reported that upwards of $4.5MM had been wired from a bank account in Ohtani’s name to the alleged gambling ring. Sports gambling remains illegal in California. A spokesperson for Ohtani initially told ESPN that the two-time MVP had wired the money to pay off gambling debts which Mizuhara had accrued. The spokesperson later retracted that and pointed to the attorneys’ statement concerning theft.

Mizuhara and other sources told ESPN that Ohtani does not gamble and that the wire transfers covered losses which the interpreter had racked up. An attorney for Matthew Bowyer, the alleged bookmaker, said in a statement to ESPN that “Mr. Bowyer never met or spoke with Shohei Ohtani.” ESPN reports that Mizuhara had placed bets with Bowyer on various sports, not including baseball, going back to 2021.

On Tuesday, Mizuhara told ESPN that he’d asked Ohtani to pay off his gambling debts. “Obviously, he wasn’t happy about it and said he would help me out to make sure I never do this again,” Mizuhara had said. “He decided to pay it off for me. I want everyone to know Shohei had zero involvement in betting. I want people to know I did not know this was illegal. I learned my lesson the hard way. I will never do sports betting ever again.” Mizuhara had stated that he and Ohtani sent multiple wire transfers to the bookmaker in installments; ESPN observed two transfers at $500K apiece in Ohtani’s name.

Mizuhara disavowed those comments this afternoon, telling ESPN that Ohtani was unaware of the gambling debts and had not transferred any money. “Obviously, this is all my fault, everything I’ve done. I’m ready to face all the consequences,” he said on Wednesday. He reiterated that he did not place any bets on baseball.

Needless to say, MLB players and team employees are prohibited from placing bets on baseball. They are allowed to place bets on other sports, although that obviously only applies in jurisdictions where sports gambling is legal.

“The Dodgers are aware of media reports and are gathering information,” the club said in a statement. “The team can confirm that interpreter Ippei Mizuhara has been terminated. The team has no further comment at this time.” An MLB official told Andy McCullough, Fabian Ardaya, Britt Ghiroli and Sam Blum of the Athletic that Ohtani is not currently facing discipline. A league source tells ESPN that their next step is to “gather facts,” although it’s unclear if they’ll launch an official investigation.

Agent Nez Balelo Discusses Shohei Ohtani’s Free Agency

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With Shohei Ohtani now officially a member of the Dodgers and in possession of a record-setting 10-year, $700MM contract, agent Nez Balelo pulled back the curtain a bit on Ohtani’s very secretive free agent explorations in an interview with USA Today’s Bob Nightengale.

The purposeful lack of direct information about the Ohtani sweepstakes only added to the firestorm of media speculation about where the two-way superstar might land, and the tight hand that Balelo reportedly kept on the proceedings drew some criticism for its perceived over-the-top nature.  However, the CAA agent unsurprisingly didn’t have any regrets about the tactics.

“I’m so glad we did it this way, and I would do the same thing over and over again.  There’s not even a question in my mind,” Balelo said.  “The clubs appreciated it and respected it.  There wasn’t a team that said, ’You know what, let’s just get this out.’  Shohei and I wanted to be able to control the narrative, and teams were on board with it.  I heard that some media members felt that I needed to share information because this is a historical moment, but I 100% disagree.  I can’t even begin to even think how that makes sense.  There has to be a level of confidentiality….This was arguably the most highly exposed free agent ever on the market, and ultimately, I got the best result.  So how can you judge and criticize the way that I approached this?“

That said, Balelo also seemed to push back against reports that suggested any public acknowledgement by a team of its interest in Ohtani could or would detract from the team’s chances.  “That was ridiculous.  Those words never came out of my mouth,” Balelo said, pointing out that Dodgers manager Dave Roberts’ admission at the Winter Meetings that L.A. was in on Ohtani “sure didn’t have an effect, did it?”

Ohtani said during Spring Training that he wanted to test free agency and not discuss an extension with the Angels during the season, allowing Balelo and the CAA team to craft “a well thought-out approach” months in advance of Ohtani’s official entry into the market.  Balelo met with executives from several teams during the GM Meetings, which the agent viewed as “a good gauge of where the interest level was, to understand who was serious, and who really who was just kicking the tires.  There were a lot of teams that weren’t going to be in play because of the level of [money] where they all felt this was going to go.  So that that pretty much eliminated half the field.”

As more and more teams fell out of the race, the five finalists were the Dodgers, Angels, Giants, Cubs, and Blue Jays.  “The Dodgers were always at the forefront in talks,” Nightengale writes, and Balelo similarly wasn’t surprised when Ohtani informed his agent late in the afternoon on December 8 that he had decided to sign with Los Angeles.

This happened to be the same day that multiple reports suggested Ohtani had agreed to a deal with the Jays, and was en route to Toronto in a private jet.  Balelo described the situation as “about the most reckless reporting I’ve ever experienced in this game,” as “I felt really, really bad for the country of Canada.  And I felt really, really bad for the Toronto Blue Jays organization.  They are really good people.  What they had to endure, and the pain, wasn’t right.  I felt so bad for all of them that they had to go through that because it was the extreme emotional roller coaster of thinking that they had him and then finding out they didn’t.”

The Dodgers weren’t officially told Ohtani’s decision until the next day, and Balelo then called the Jays, Giants, Cubs, and Angels in turn to also break the news before Ohtani officially announced his choice via Instagram.  Dodgers president of baseball operations Andrew Friedman already had some inkling of Ohtani’s choice on December 8 when Balelo inquired whether the Dodgers would agree to Ohtani’s desire to defer the vast majority of his $700MM deal until 2034 and beyond.  This offer was already on the table, so the Dodgers made no late increase to convince Ohtani to sign.

Though deferrals have been a common part of baseball contracts for years, Ohtani’s choice to defer $680MM of his salary drew almost as many headlines as his decision itself.  In discussing the deferred money, Balelo noted that Ohtani is “in such a unique position because he’s going to make so much money off the field….Basically, he’s in the most unique position of any player in the history of the game to be able to do this.  It’s not like we’re setting a precedent that every player now is going to defer everything out in his contract.”

With Ohtani’s deferrals lowering his luxury tax hit to $46MM (rather than $70MM) per season, the Dodgers will very significantly benefit from a Competitive Balance Tax standpoint, and Ohtani will cost himself some overall money due to inflation and the value of money today against money earned in a decade’s time.  Balelo described Ohtani’s decision as “the most incredible act of unselfishness and willingness to win that I’ve ever experienced in my life, or ever will. He did not care at all about the present value inflation.  And you know what, neither did I.  He should be praised for this.  He did not want to handcuff a team with his salary.  He said, ’How can I contribute to a team and allow them to stay competitive?’  So he took the most unselfish approach possible and deferred everything.”

Report: Angels Did Not Match Dodgers’ Offer For Ohtani

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The Dodgers recently signed Shohei Ohtani to a 10-year, $700MM contract, though with heavy deferrals that make the net present value significantly less than that. He was reportedly discussing similar deals with clubs like the Giants and Blue Jays but Jack Harris of the Los Angeles Times reports that Angels’ owner Arte Moreno did not want to match those offers.

As mentioned, the deal with the Dodgers is heavily deferred, with Ohtani set to make just $2MM annually during the course of the deal. He will then received $68MM per year for the 10 years after he has played the seasons covered by the contract. That brings down the net present value, with the league valuing it at just over $460MM while the MLBPA has it at $437,830,563. Farhan Zaidi, the president of baseball operations of the Giants, recently revealed that the club offered Ohtani essentially the same deal he accepted from the Dodgers. The Blue Jays were “right there,” according to a report from Ben Nicholson-Smith of Sportsnet.

All reports indicated that Ohtani and his reps were driving a lot of the negotiations. It was apparently Ohtani’s idea to have such an unusual contract structure, which he proposed as it would allow the signing club more financial freedom in the short term to build a winning club around him. The Dodgers, Giants and Blue Jays were all seemingly willing to meet his ask in comparable ways, but he chose the Dodgers and their unparalleled track record of recent success.

The Angels, however, don’t appear to have been at the final table. Per the report from Harris, Ohtani’s agent Nez Balelo reached out to them towards the end of the process and gave them a chance to convince Ohtani to stay. But Moreno was reportedly unwilling to match the offer Ohtani eventually signed. “It’s a place that he really loved to play. He loved the people there, everything. So we didn’t want to miss the idea of giving them an opportunity,” Balelo said “But at the end, it just wasn’t going to work.”

As Harris points out, it’s not clear Ohtani would have seriously considered a return to Anaheim even if they were willing to match the asking price. But the fact that they were not willing to do so seems to eliminated any chances of a reunion. It’s unknown what kind of final offer the Angels did make.

Moreno has generally been unafraid to spend big on star players, giving big deals to players like Mike Trout, Albert Pujols and Anthony Rendon. It’s interesting that he decided to pull the reins on the Ohtani chase, though it’s unknown exactly why or how close they were.

The club will now have to enter a post-Ohtani world and try to chart a course forward without him. General manager Perry Minasian has made it clear that the club is not rebuilding and is not trading Trout. In 2023, they ran their payroll up against the competitive balance tax, ultimately staying narrowly beneath it. Roster Resource pegs their 2024 CBT number at $168MM at the moment, almost $70MM below next year’s base threshold. That should give them plenty of room to make some bold strikes, likely to upgrade the pitching staff. Despite having both Ohtani and Trout on the roster for the past six years, the Angels haven’t finished above .500 since 2015, made the playoffs since 2014 or won a postseason game since 2009.

Ohtani Contract Contains Conditional Opt-Out Clause Based On Ownership, Front Office

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Shohei Ohtani’s landmark contract with the Dodgers has prompted endless discussion, debate and criticism due to the unprecedented scope of the deferrals it contains, but that’s far from the only fascinating wrinkle of the 10-year deal.

Sports Illustrated’s Tom Verducci reports that the contract contains language “that assures the club will make good on its promise to use the savings he created to build a competitive team around him.” Ohtani’s agent, Nez Balelo of CAA Sports, tells Verducci that Ohtani asked him early in the free-agent process about whether it was possible to defer the majority or entirety of his salary in order to give his club more present-day payroll flexibility.

As far as we at MLBTR can tell, that’s the first clause of its nature in any player contract. Further specifics of the clause and the manner in which it will be enforced remain unclear. The Dodgers’ reported pursuits of a trade involving Tyler Glasnow and Manuel Margot, plus their recent meeting with Yoshinobu Yamamoto, seem to signal that the team is indeed taking steps to satisfy that condition, though.

The luxury-tax hit associated with Ohtani’s contract is $46.06MM, according to Verducci, which sits roughly in line with expectations at the outset of his free agency. But, the manner in which the contract was announced has created substantial criticism. It’s fair to wonder if, had the contract been announced as 10 years and $460MM deferred with interest, it would have invited the same backlash as the initial announcement of a $700MM deal … which was later reported to be 97% deferred.

The initial $700MM figure looks good in a recruiting pitch for future CAA clients, but the league’s approximate $460MM valuation of the net present value is a different story entirely. The MLBPA’s valuations are a bit lower yet; Jon Heyman of the New York Post tweets that the union values the contract at $437,830,563, but the luxury-tax hit will be based upon the league’s calculations.

There’s been plenty of talk about the contract as a means of gaming the luxury tax system, although the $46.06MM CBT hit is in line with the league’s valuation of the deal. If anything, the contract is less about circumventing the luxury tax and more about artificially tamping down the team’s actual, bottom-line payrolls from 2024-33.

Unprecedented contractual language doesn’t stop with the competitive team clause. Ken Rosenthal of The Athletic reports that the contract states the following: “If specific change in Dodger personnel, player may opt out of contract at end of season the change occurs.”

The conditional opt-out is applicable to controlling owner Mark Walter and president of baseball operations Andrew Friedman, per a report from Beth Harris and Ronald Blum of the Associated Press. If either Walter or Friedman leave the organization, Ohtani would gain the opt-out possibility. Alden González of ESPN tweets that would go into effect at the end of any season in which Walter or Friedman departed, so there’s no possibility of Ohtani opting out midseason.

It’s nevertheless a noteworthy inclusion, particularly in the case of Friedman. While the front office leader isn’t in any immediate jeopardy based on the team’s excellence over the course of his decade-long run, tying his contractual status to that of the team’s best player for the next 10 years is a bold move by ownership. Friedman signed an extension of undisclosed length in November 2019. It isn’t clear if he has signed any subsequent deals, though it’s hard to envision him departing the organization any time soon.

Given the massive slate of deferred money — Ohtani will be paid just $2MM annually from 2024-33, with the remaining $680MM paid out from 2034-43 — it’s difficult to see Ohtani opting out at any juncture, unless there’s language that allows a portion of those deferrals to be paid out in conjunction with the opt-out.

It’s technically feasible that if Ohtani is able to return to the mound in 2025, he could reestablish himself as a viable top-of-the-rotation starter and have even greater earning power than the ~$460MM net present value of his current contract. However, if he’s only been paid out around 1-2% of the overall guarantee at the time of a theoretical opt-out opportunity, it’d still be difficult to walk away from the deal.

Then again, Ohtani showed with his original move to MLB (and to a lesser extent with the eye-popping nature of his current deferrals) that money is not necessarily his top priority in any contract. He’s also reportedly earning as much as $50MM annually in terms of endorsements and other marketing opportunities, so the notion that he’d leave a staggering portion of his record contract on the table in order to pursue a return to free agency isn’t as far-fetched as it would be for many other players.

News of the (as we know it) unprecedented out clause in Ohtani’s contract will invite ample speculation. Fans on social media have already wondered about ownership changes, front office changes, managerial changes or perhaps even trades of star teammates like Mookie Betts and Freddie Freeman. With the contract itself not plainly spelling out the nature of the change, there’s no way of knowing the specific nature of personnel change that would trigger this right for Ohtani, however. The clause is further proof of the lengths to which the Dodgers — and presumably other teams — were willing to go in order to secure the two-way star’s generational talents.

Giants president of baseball operations Farhan Zaidi has already indicated that the terms of Ohtani’s contract with the Dodgers were proposed by Ohtani and his agents, and that the Giants were comfortable effectively matching them. Presumably if Ohtani’s camp included the stipulations about investing the present-day savings and the conditional out clause in the terms with the Dodgers, those factors were also present in discussions with the Giants, Blue Jays and other finalists for his services.

One other note from the AP: while the Dodgers have already announced the contract, it has not yet gone to MLB for official approval. As of Wednesday evening, the deal still takes the form of a letter of agreement between Ohtani and the Dodgers.

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