When Shohei Ohtani announced in December that he would be signing a $700 million contract with the Los Angeles Dodgers at an average annual salary of $70 million, the news reached a global audience. Even with the $680 million portion being postponed for ten years, this is still a staggering sum.

Let’s introduce Lewis Hamilton. The world of sports has been shocked by the superstar F1 driver’s announcement of a dramatic 2025 switch from Mercedes to Ferrari. That’s not all, though; Hamilton’s deal’s contract specifics are astounding.

Ohtani’s $70 million annual average vehicle mileage (AAV) pales in comparison to Hamilton’s anticipated $100 million from Ferrari.

Since records in sports seem to be made annually, this fits nicely with the trend of contract records being transient. Even while sports revenue is always rising, it begs the question of whether this trend can continue.

With Shohei Ohtani’s contract, the Dodgers have flexibility going forward

In addition to heralding a dramatic shift in the MLB in 2024, Shohei Ohtani’s contract with the Los Angeles Dodgers also hinted at the possibility that a golden age for the team may have begun due to his deferred wages.

One day, the team will have to give him $68 million annually, but not for ten years. As a result, the Dodgers have adopted a buy now, pay later strategy that gives them flexibility going forward.

In LA, deferred money is a topic of intrigue, as the team will have to pay $83.85 million in 2039, a long way off. Most people believe that either the Atlanta Braves or the Dodgers will win the World Series in 2024.

LA is the favorites for a reason, as they not only signed Shohei Ohtani but also Yoshinobu Yamamoto, Tyler Glasnow, and Teoscar Hernandez. In Los Angeles in 2024, there are big expectations due to a loaded roster and a high salary.