Dodgers' success story quietly started with Shohei Ohtani’s unique contract structure

It's very possible that Shohei Ohtani's contract is going to be viewed as the straw that broke the camel's back next offseason, when there is a possible work stoppage ahead of the 2027 season. By bringing him on a creative deal that no one could have predicted, the Los Angeles Dodgers knew what they were doing before signing Ohtani.

In case you've been under a rock, Ohtani inked a 10-year deal with the Dodgers worth $700 million. The deal is heavy on deferrals, seeing Ohtani only get paid $2 million through the duration of his contract, and lowering his AAV hit to just over $46 million on the Dodgers' payroll. There's some other fun wording in Ohtani's contract, but the financials are the gist of what ignited the Dodgers' dynasty.

This wasn't about the Dodgers not being able to pay Ohtani, or wanting to keep their pockets flushed with cash. It was Ohtani who introduced this structure to the Dodgers, and while some teams were hesitant to listen, Los Angeles was all ears.

Shohei Ohtani’s contract shaped the Dodgers’ path to back-to-back titles and owning the offseason.

The Dodgers didn't waste any time taking advantage of Ohtani's contract situation. That same offseason, they traded for Tyler Glasnow and signed him to an extension worth $136.5 million. More importantly, they signed Yoshinobu Yamamoto to a 12-year deal worth $325 million. Add Teoscar Hernández on a one-year deal that paid him over $20 million, and the stage was set for Los Angeles to win the World Series.

To the surprise of no one, they did.

While Ohtani's contract deferrals certainly are the origin of how Los Angeles has become the villain in baseball, the reigning two-time National League MVP's global impact can't be overlooked. Between ticket sales, marketing, and merchandise, the Dodgers reportedly made back the entirety of Ohtani's $700 million contract by the end of his first season.

The beauty behind Ohtani's contract is that the benefits from the deferrals are expected to last through the 10 years that he signed with the team. It's why Los Angeles didn't slow down last offseason when they added Blake Snell, Tanner Scott, and re-signed Hernández to a three-year deal worth $66 million.

Admittedly, the 2025 season didn't go exactly how the team planned, but they still walked away from the season with their second consecutive World Series title.

This offseason proved that the Dodgers aren't quite done taking advantage. It's had a different feel to it, but they were still able to sign the top closer available in Edwin Díaz and cap the offseason by signing the top free-agent available in Kyle Tucker.

Tucker's contract, like Ohtani's, was creative, but the result is the Dodgers having over $2 billion in financial obligations moving forward.

This was all possible because of Ohtani and the deal that he signed two years ago, and it's very possible that this is the last season where Los Angeles is truly able to take advantage. The CBA talks next offseason will almost certainly include a reworked payroll system that may prevent something like this from happening again.