Dodgers gave Ohtani the big money to play, but also because he can sell

MLB sign the biggest deal in MLB history as a free agent this offseason and didn’t disappoint. He’s the sport’s best two-way player ever — not even Babe Ruth hit and pitched at the same time so effectively — and though he won’t be able to pitch in 2024 following Tommy John surgery, he should provide plenty of value at the plate before he returns to the mound in 2025.

But the $700 million price tag was more than most imagined.

His $70 million average salary is 62% above the previous high of about $43.3 million, shared by pitchers Max Scherzer and Justin Verlander with deals they struck with the New York Mets. Ohtani’s average salary nearly doubles the roughly $42.3 million he earned over six seasons with the Angels. It also exceeds the entire payrolls of Baltimore and Oakland this year.

The reason the Dodgers made that kind of commitment is simple: It’s probably worth it. Not just because he could help win World Series, but because of the value he brings even if he doesn’t.

“If Ohtani is marketed right, he’s a globally iconic player,” said Mike Lewis, a professor of marketing at Emory University who specializes in sports business. “It could be like something from Formula One, where you’ve got the attention of the whole world. Baseball has sometimes struggled to gain national attention, but he’s the kind of guy who attacts millions of eyeballs, and not just from the U.S.”

The Dodgers haven’t had trouble attracting eyeballs over the past several years. They’re a perennially successful franchise — winning the NL West 10 of the past 11 seasons and the World Series in 2020 — and averaged more than 47,000 fans per game last year, best in the sport. They’ve doled out big money to stars like Freddie Freeman, Mookie Betts and Clayton Kershaw.

But nothing compares to Ohtani.

Lewis — the Emory professor — said the spike in interest could be comparable to Major League Soccer’s Inter Miami, which saw a massive jump in online interaction, particularly on Instagram, after Messi signed.

As of Sunday morning, the Dodgers’ Instagram account had 3.2 million followers. Ohtani on his own has 6.3 million.

That’s just the tip of the iceberg. The average fan understands that Ohtani will generate revenue with more tickets, concessions and jerseys sold.

But no player drives more interest internationally, especially in Ohtani’s native Japan, with a baseball-obsessed population of 126 million. Ohtani already has a deep group of sponsors targeting audiences on both sides of the Pacific Ocean, including New Balance, ASICS and Porsche Japan.

For the Dodgers, his international appeal means more companies in the U.S. and abroad are interested in advertising — Japanese companies frequently paid for prime ad spaces around Angel Stadium when Ohtani was in Anaheim. That alone brings a cascade of cash that could pay off a significant portion of Ohtani’s deal.

Monster homers. Potential dominance on the mound. It’s a Hollywood script that the Dodgers are hoping comes true.

“He’s handsome and he’s a huge box office draw,” Steinberg said. “There are very few players who can match that. He has appeal to all.”