Dodgers Putting Ohtani Money To Good Use Already With Major Trade
The Los Angeles Dodgers are rapidly attempting to become Major League Baseball’s version of the Death Star.
Just a few weeks ago, the team came to an agreement with the top free agent available, Shohei Ohtani. Ohtani, now infamously, agreed to an unprecedented contract structure, deferring 98% of his $700 million salary until after retirement.
Further details of his contract emerged after the team officially announced him, namely that he can opt out if key personnel leave. And importantly, that he effectively required the Dodgers to put his savings to good use. And boy did they start quickly.
On Thursday, the team introduced Ohtani in a massive press conference.
And unbelievably, just a few hours later, reports broke that the team had agreed to a major trade with the Tampa Bay Rays. A trade which was just completed on Saturday, bringing star pitcher Tyler Glasnow and outfielder Manuel Margot to Los Angeles for two prospects. But that buries the lede of just how impactful the Ohtani contract structure is to building a competitive team.
BALTIMORE - Tyler Glasnow of the Tampa Bay Rays pitches against the Baltimore Orioles during the third inning at Oriole Park at Camden Yards on September 16. (Photo by Scott Taetsch/Getty Images)
The Dodgers Using Financial Might To Build Dominance
The Glasnow trade involved an unusual twist: the Dodgers got him to agree to an extension before the deal was even completed.
Glasnow, who has repeatedly suffered with injuries, but been extremely impressive when healthy, was set to become a free agent after 2024. That made a potential return for him lesser than you’d expect for someone of his skill level. But the Dodgers gave up the next five years of team control for a promising young pitcher, Ryan Pepiot, and another young player with upside, Johnny DeLuca.
Because they were able to extend Glasnow, thanks to the savings on Ohtani’s contract. Glasnow is now signed for 2024 and the following four years with a team and player option for a fifth year. At roughly $25 million per season, it’s a bargain if he’s able to duplicate his past performance over a full season. But it also means that thanks to Ohtani’s deferrals, the Dodgers have been able to add one of the game’s best hitters and a potential top-10 pitcher for just $27 million per year.
It’s hard to get more efficient with your spending than that.
Contrast Between Teams Gets Even Clearer
Over 35 starts in 2021 and 2023, Glasnow’s been worth 5.8 wins, per Fangraphs. Ohtani was worth 6.6 wins as a hitter alone in 2023. If they’re both available and healthy for all of 2024, the Dodgers could be paying just $27 million for nearly 12 wins worth of production.
By contrast, Ohtani’s former team, the Los Angeles Angels, paid $38 million to Anthony Rendon for 0.2 wins last year. And 0.8 in 2022.
If you’re looking for an instruction manual on how to build a dominant team, the Dodgers are a great place to start. The Angels are not.
Ohtani’s selflessness allowed them to acquire Tyler Glasnow to shore up a mediocre rotation. And he’s reportedly helping recruit the second best free agent available, starting pitcher Yoshinobu Yamamoto. Yamamoto’s expected to earn at least $30 million per year, seemingly limiting his market.
And if the Dodgers had to pay full price for Ohtani, they may not have had the available payroll to sign him too. Now they do. Not a great time for the rest of the league.