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How Shohei Ohtani’s first year transformed the Dodgers financially

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How Shohei Ohtani’s first year transformed the Dodgers financially

The announcements flowed like clockwork at the start of last season, with the Dodgers issuing a near-weekly stream of press releases about new Japanese sponsorships.

April 1: The Dodgers partnered with All Nippon Airways, Japan’s largest airline, in a multi-year deal.

April 4: They inked a multi-year agreement with Toyo Tires, one of Japan’s top tire manufacturers.

April 8: The team announced a partnership with Kowa, a Japanese trading and manufacturing giant.

April 22: A multi-year deal was signed with Daiso, a popular Japanese retailer.

The list kept growing throughout the year, with the Dodgers securing deals with Japanese companies spanning various industries, including cosmetics (Kosé), fermented dairy drinks (Yakult), and electric vehicles (Afeela).

This flurry of activity aligned with the Dodgers’ expectations after signing Shohei Ohtani exactly a year ago. The two-way star and three-time MVP, who agreed to a 10-year, $700-million contract with deferred payments, brought unprecedented global attention and significant marketing opportunities.

Now, 12 months later, top Dodgers executives admit Ohtani’s impact surpassed even their boldest projections. Just as his bat transformed the team’s championship lineup on the field, his global stardom revolutionized the franchise’s business potential off it.

“We do our best to capitalize on whatever opportunities we have, and I think we were well prepared for it,” team president Stan Kasten said. “But what we weren’t prepared for was how significant his impact would be. It really transcended any of our plans. It just did.”

Toward the end of Shohei Ohtani’s time with the Angels, the Japanese superstar was estimated to generate around $10 million to $20 million annually in additional revenue for the team. Many of the companies now advertising at Dodger Stadium previously had prominent signage at Angel Stadium.

After Ohtani signed with the Dodgers, expectations for his revenue-generating potential only increased. The Dodgers boasted a larger fan base, a globally recognized brand, and a competitive edge as the premier team in Southern California. Even before factoring in the extraordinary $680 million in deferrals Ohtani included in his contract — a structure allowing the Dodgers to pay him just $2 million annually in salary to maintain payroll flexibility — some industry analysts projected his value to the team could easily triple.

It turns out those projections might have underestimated his true impact.

Beyond a surge in corporate sponsorship deals, the Dodgers experienced growth in ticket sales, merchandise revenue, and even stadium tours. According to Japanese tourism officials, over 80% of visitors from Japan to Los Angeles make a point to visit Dodger Stadium.

As Ohtani powered the Dodgers to their first full-season World Series title since 1988, chief marketing officer Lon Rosen noted a palpable “buzz in the community,” translating into heightened interest in the team. “More people are buying merchandise, tickets, hot dogs — just more of everything,” Rosen said.

Although the team has not disclosed exact figures, reports suggest Ohtani’s annual impact on the Dodgers now reaches nine figures. Coupled with the financial opportunities unlocked by his deferred salary structure, predictions of Ohtani as a billion-dollar asset for the franchise appear well on their way to becoming reality.

“Because he helps create a winning culture, he makes business better,” Rosen said. “Whether it’s in sponsorship or merchandise or ticket sales. You name it, he does it.”

“If you’re only going to count the $2 million [of his salary] from this year,” Kasten deadpanned when asked about Ohtani’s impact on the team’s bottom line, “I’m gonna say we cleared that hurdle.”

As a result, if the Dodgers weren’t already baseball’s top financial powerhouse, they likely are now.

Since Mark Walter’s Guggenheim investor group acquired the team in 2012, the Dodgers have consistently maintained one of MLB’s highest payrolls. However, Ohtani’s arrival has ushered in an unprecedented era of spending at Chavez Ravine.

Prior to signing Ohtani, the Dodgers had only inked six contracts worth $100 million or more in their history and often seemed cautious about committing to massive deals for marquee free agents.

Now, within the past year alone, the team has finalized five such contracts, including last month’s $182 million agreement with two-time Cy Young Award winner Blake Snell.

“We always have been good, and we always have been aggressive,” Kasten said. “But [having Ohtani] makes us attractive as a landing spot for players. So is there a little bit of striking while the iron is hot? We certainly felt that way. We have a greater offering than ever.”

Several of the Dodgers’ recent blockbuster deals have included substantial deferrals, sparking criticism from some in the baseball world who argue that the wealthy Dodgers are amplifying their economic edge over the rest of the league. However, these contracts also feature sizable signing bonuses: $52 million for Blake Snell, $50 million for Yoshinobu Yamamoto, $30 million for Will Smith, and $10 million for Tyler Glasnow.

This approach benefits all parties involved. The Dodgers minimize the impact on their luxury tax payroll, while players retain the present value of their contracts.

Still, this strategy requires the team to pay a significant amount of cash upfront.

That’s where Ohtani comes in. His contract with the Dodgers was deliberately structured to allow the team to pursue additional star players using this exact financial model.

“The pledge that we made when we met with him about how aggressive we were going to be to try to win, we feel some responsibility and obligation to fulfill that,” president of baseball operations Andrew Friedman said last week.

Could the Dodgers have spent this aggressively — with their 2025 luxury tax payroll already projected to exceed $300 million and more signings likely on the horizon — without Ohtani in the mix?

“Fortunately,” Friedman said, “we don’t have to spend much time thinking about that alternate reality.”

Ohtani’s financial impact isn’t limited to the Dodgers alone.

His immense popularity has elevated the sport’s global profile. His first career postseason appearance this year boosted television ratings throughout October. Meanwhile, companies unable to secure sponsorship deals with the Dodgers have opted to purchase advertising space in other teams’ ballparks for games when Ohtani is in town.

“That’s power of Shohei,” Rosen said. “It’s almost like a Shohei economy for baseball.”

No one has benefited more from Ohtani’s presence than the Dodgers.

They gained a superstar who played a pivotal role in their championship success. They secured a sponsorship magnet who has significantly boosted the team’s revenue. And now, just one year into their ten-year partnership, the impact is becoming unmistakably evident, empowering the Dodgers to wield their financial strength in ways previously unimaginable.

Ethan Blake

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