An ideal structure, from a club’s perspective, might be to give Ohtani a $25 million salary next season, a record for a DH, along with a conditional opt-out based on how many days he is active on the roster. If Ohtani opted out, the team then could void it by exercising a mammoth guarantee — say, $396 million over nine years, a record $44 million AAV. The team still would not be sure of his pitching future. But in a year, it likely would have a better idea.
The same structure then could carry over to 2025, when Ohtani presumably would be ready to pitch again. His salary that season could be say, $38 million. The trigger to void the opt-out would be larger, say, $416 million over eight years, a $52 million AAV. By adding incentives, the potential 10-year value could increase to more than $500 million...
They [Ohtani and his agent] almost certainly will want far more of an upfront guarantee, as well as opt-outs starting once Ohtani has re-established himself as a pitcher, perhaps after his second or third year. The demand in the market should enable them to largely dictate the terms, and avoid settling for a structure that leaves Ohtani exposed to risk.
Here’s another, simpler way to look at what Ohtani might get. Start with a $450 million guarantee that would beat Trout’s record. Add $150 million in incentives to push the potential value to $600 million. First team to guarantee the incentives signs Ohtani.
How many teams would effectively be willing to gamble $150 million on Ohtani as a pitcher? Perhaps not many, if their heads of baseball operations alone were making the decision. But ownerships also will be involved, and some almost certainly will see beyond Ohtani’s pure baseball value. Just last winter, the Rangers signed an injury-prone
Jacob deGrom for $185 million entering his age-35 season. All it takes is one.