The Los Angeles Dodgers are making seismic moves in a billion-dollar offseason. The latest addition being Japanese ace Yoshinobu Yamamoto, who secured a staggering 12-year, $325 million deal. This comes on the heels of the monumental $700 million contract with Shohei Ohtani and an extension for Tyler Glasnow. Just with these three deals, the Dodgers are leaving the NFL’s star-studded Kansas City Chiefs in the dust.
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The Guggenheim Baseball Management has committed approximately $1.145 billion in contracts, cementing their determination to dominate the upcoming seasons. A jaw-dropping spending spree!
The Chiefs are nowhere near the spending prowess of the Dodgers despite having football luminaries like Patrick Mahomes and Travis Kelce. The billion-dollar offseason of the MLB powerhouse puts them in a league of their own, showcasing a financial might that transcends even the most prominent names in football.
Examining the top earners in the NFL’s defending champion, the Kansas City Chiefs, reveals a financial landscape that pales in comparison to MLB’s spending powerhouse, the Los Angeles Dodgers. While Patrick Mahomes leads with a formidable 10-year, $450 million deal, the combined earnings of the Chiefs’ top three earners Mahomes, Joe Thuney, and Jawaan Taylor amount to $610 million.
However, this figure is just over half of what the Dodgers recently committed to their roster upgrades. The Chiefs still fall short of surpassing the colossal deal secured by Shohei Ohtani even including Travis Kelce‘s $57.25 million contract.
Dodgers Set Expensive Payroll Precedent
Yoshinobu Yamamoto has etched his name in history with the largest pitching contract ever after he sealed a groundbreaking 12-year, $325 million deal. The deal also comes with an additional financial commitment of a $50 million posting fee owed to Yamamoto’s former team, the Orix Buffaloes.
The Dodgers have invested a staggering $375 million in securing Yamamoto’s prowess on the mound. Remarkably, despite this monumental expenditure, the Dodgers have managed to keep their 2024 payroll from skyrocketing, showcasing strategic financial planning for the highly anticipated offseason.
Shohei Ohtani’s deferrals are structured at $2 million annually over the next decade, and they contribute to maintaining a manageable payroll for the Dodgers.
Firstly, the Dodgers are under the ownership of Guggenheim, a consortium featuring influential figures like Mark Walter, Magic Johnson, and Todd Boehly, boasting an impressive $300 billion in Assets Under Management (AUM). This financial powerhouse enables the Dodgers to make unprecedented investments in player contracts.
Additionally, the team benefits from one of the most lucrative broadcasting contracts in the realm of sports. However, such a scenario backs up just one speculation that has continuously been there in such a league. How will the low-budget teams tackle the issue of competing with giants who can promise over a billion dollars to players, without a salary cap?
