Dodgers Reaping Over $200 Million Annually From Ohtani Deal

Signing the two-way star has paid huge dividends for the Dodgers both on and off the field.

Apr. 17, 2026 at 12:41am

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A cubist, geometric painting depicting a baseball game or match, with the players and field broken down into sharp, overlapping planes of Dodger blue, white, and red colors, conveying the fractured, multi-perspective nature of the Dodgers' financial dominance.The Dodgers' financial windfall from Shohei Ohtani's stardom has fueled their ability to assemble a superteam, but also drawn resentment from rivals.Los Angeles Today

When the Los Angeles Dodgers signed two-way superstar Shohei Ohtani to a historic 10-year, $700 million contract, it was about more than just on-field production. The Dodgers were looking to capture the lucrative Japanese market and leverage Ohtani's global stardom for marketing purposes. According to reports, those calculations have paid off tremendously, with the team making over $200 million per year from Ohtani alone.

Why it matters

Ohtani's massive contract and the revenue he generates have given the Dodgers unprecedented financial flexibility, allowing them to continue spending heavily on top free agents and build a superteam. However, this has also fueled resentment from other MLB teams and increased calls for a salary cap, as the Dodgers' ability to outspend the competition has made them the "villain" of baseball.

The details

The Dodgers' deal with Ohtani is structured with most of the $700 million being deferred, with Ohtani only earning $2 million annually from 2024-2033. This has allowed the Dodgers to keep Ohtani's luxury tax hit at $46 million rather than the full $70 million, freeing up significant payroll space. The team has used this flexibility to sign top free agents like Blake Snell, Yoshinobu Yamamoto, Edwin Díaz, and Kyle Tucker to large contracts.

  • Ohtani signed his 10-year, $700 million contract with the Dodgers prior to the 2024 season.
  • The Dodgers have won two straight World Series titles since Ohtani joined the team.
  • The Dodgers are expected to pursue a salary cap following the expiration of the current CBA after the 2026 season.

The players

Shohei Ohtani

A two-way superstar who can both pitch and hit at an elite level. Ohtani has won two straight MVP awards with the Dodgers and four total in his career.

Blake Snell

An ace left-handed pitcher the Dodgers signed to a five-year, $182 million contract following their 2024 World Series title.

Edwin Díaz

A closer the Dodgers signed to a three-year, $69 million contract this past offseason.

Kyle Tucker

An outfielder the Dodgers signed to a four-year, $240 million contract this past offseason.

Tom Verducci

A Sports Illustrated reporter who stated that the Dodgers are making at least $200 million per year from Ohtani.

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What they’re saying

“I was told that the Dodgers are making at least $200 million a year off Ohtani. Off of one player. That's just crazy. It allows them payroll room to sign players like [Blake] Snell, [Yoshinobu] Yamamoto and everybody else they've brought in.”

— Tom Verducci, Sports Illustrated Reporter

What’s next

The Dodgers will look to win their third straight World Series title with Ohtani leading the way, while other teams continue to voice frustration over the team's ability to outspend the competition.

The takeaway

Ohtani's historic contract with the Dodgers has proven to be an incredibly lucrative investment, allowing the team to build a superteam and dominate the league while generating over $200 million per year in revenue. However, this has also made the Dodgers the "villain" of baseball and fueled calls for a salary cap to curb their spending power.