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Shohei Ohtani's Contract Clause: Opt-Out Triggered by Changes in Dodgers Leadership, Mark Walter, and Andrew Friedman's Roles

Shohei Ohtani's Contract Clause: Opt-Out Triggered by Changes in Dodgers Leadership, Mark Walter, and Andrew Friedman's Roles

By Beth Harris and Ronald Blum

Shohei Ohtani's groundbreaking $700 million, 10-year contract with the Los Angeles Dodgers comes with a unique twist — an opt-out clause triggered by the fate of two pivotal executives. A source familiar with the agreement revealed to The Associated Press on Wednesday that Ohtani can exercise his right to terminate the deal if either Mark Walter, the controlling owner, or Andrew Friedman, the president of baseball operations, departs from their roles.

The revelation adds a layer of intrigue to Ohtani's eagerly anticipated introduction as a Dodger, set to unfold at a news conference on Thursday. The person, speaking anonymously as the terms were not officially disclosed, highlighted the specific conditions under which Ohtani could reconsider his massive contract.

Announced just this Monday, Ohtani's contract intricately defers 97% of the staggering sum without interest, deferring full payment until the year 2043. The Athletic was the first to report on Wednesday that Ohtani's contract included this unusual provision, allowing him an escape route in the event of key personnel changes within the Dodgers organization.

As of now, the deal remains in the form of a letter of agreement between Ohtani's representatives and the team, yet a formal contract has not yet been submitted to Major League Baseball, according to the source.

The contract outlines annual salaries of $70 million, with $68 million of each year's salary deferred, bearing no interest and payable in equal installments every July 1 from 2034 to 2043. Ohtani's grand introduction is scheduled for 3 p.m. PST at Dodger Stadium's Centerfield Plaza.

In a surprising turn of events, Major League Baseball reported on Wednesday that Ohtani has shattered Fanatics' record for the highest jersey sales within the first 48 hours of release, surpassing global soccer icons Lionel Messi and Cristiano Ronaldo.

While Ohtani himself remained out of the public eye on Wednesday, engaging with teammates such as seven-time All-Star outfielder Mookie Betts and reliever Joe Kelly, his commitment to training and preparation was evident. Kelly, amidst the festivities of an outdoor holiday party with blaring music, shared, "I had a chance to talk to him. He was already working out, already grinding, getting bigger and stronger. His arm looked good to me."

Ohtani's contract goes beyond financial terms, encompassing a full no-trade provision, a hotel suite on road trips, a premium luxury suite for home games, and the constant presence of a full-time interpreter. Notably, Ohtani has committed to donating up to 1% of his earnings to the Dodgers' charity.

The last time Ohtani spoke with reporters was on August 9, just two weeks before a pitching injury led to surgery, sidelining him from the mound until 2025. The operation, conducted on September 19, remains shrouded in some mystery, adding an element of suspense to the Dodgers' bold investment in the multi-talented Japanese star, who previously underwent Tommy John surgery on October 1, 2018.

In a notable shift of roles, Joe Kelly, the versatile 29-year-old pitcher, bid farewell to the Los Angeles Angels and donned a new uniform number after sealing his $8 million, one-year contract with his new team. Kelly relinquished his No. 17 jersey to accommodate Shohei Ohtani, the extraordinary two-way star renowned for his prowess both as a hitter and a pitcher. Graciously acknowledging the gesture, Ohtani expressed gratitude, prompting Kelly to remark, "I wasn't going to give it up to just anybody. If Shohei keeps performing, he'll be a future Hall of Famer, and I'll be able to have my number retired. That's the closest I'll get to the Hall of Fame."

Pressed about what Ohtani offered in return for this symbolic exchange, Kelly playfully responded, "Oh, there's a list, but no comment." Ohtani, known for his reserved interactions with the media during his years in Anaheim, has set the stage for a change in dynamics, with Kelly anticipating handling Ohtani-related inquiries "maybe once a week."

Ohtani's transition from Anaheim to the bright lights of Hollywood has sparked a surge in fan interest on both sides of the Pacific Ocean, driving up demand for Dodgers merchandise and inquiries about tickets on the secondary market. Despite the team yet to commence single-game ticket sales for the upcoming season, Kelly confidently predicted, "It's going to be sold-out every game. Every game that we're a part of is going to be like a playoff atmosphere."

Approaching his 30th birthday on July 5, Ohtani boasts an impressive career resume, featuring a .274 batting average, 171 home runs, 437 RBIs, and 86 stolen bases. As a pitcher, he holds a notable 39-19 record with a 3.01 ERA and 608 strikeouts in 481 2/3 innings, accumulating a remarkable 34.7 Wins Above Replacement (WAR), per Baseball Reference.

Reflecting on the overall implications of Ohtani's record-breaking $700 million deal, Kelly emphasized its mutual benefits. He noted, "The Dodgers are competitive every year, and this is one of those things — he's the highest-paid player in all of sports, and we're still going to be able to add to our team every single year he's a Dodger."

The financial intricacies of Ohtani's contract have stirred discussions, with three different evaluations presenting varying present-day dollar values. From a luxury tax perspective, the deal is valued at $460,767,685, incorporating a 4.43% discount rate. For MLB regular payrolls, a 10% discount rate results in a value of $282,107,876. Meanwhile, the players' association appraises the contract at $437,830,563, adding further layers to the complexity of this historic agreement.

In the unfolding narrative of Shohei Ohtani's transition to the Los Angeles Dodgers, the symbolic jersey exchange with Joe Kelly marks not only a change in uniform but a gesture of respect between teammates. Kelly's relinquishment of No. 17, coupled with Ohtani's gratitude, sets the tone for a collaborative and promising era in Dodger blue.

As Ohtani's arrival generates buzz and anticipation on both sides of the Pacific, the team's expectations soar. Joe Kelly's prediction of sold-out games and a perpetual playoff atmosphere underscores the magnitude of Ohtani's impact, not just as a player but as a cultural phenomenon.

With an illustrious career behind him and a unique skill set that combines hitting and pitching prowess, Ohtani's tenure with the Dodgers holds the promise of greatness. Joe Kelly's optimism about continuous team improvement, paired with the financial intricacies of Ohtani's record-breaking contract, adds layers to the ongoing saga.

As fans eagerly await Ohtani's official introduction at Dodger Stadium's Centerfield Plaza, the narrative surrounding the highest-paid player in sports takes center stage. The nuances of the contract's evaluations further highlight its historic nature, setting the stage for a chapter in Dodgers history that transcends the baseball field.

In this evolving story of talent, teamwork, and financial intricacies, the conclusion remains unwritten, leaving baseball enthusiasts and Dodgers fans alike on the edge of their seats, ready to witness the next chapter in the captivating saga of Shohei Ohtani in Dodger blue.

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