Shohei Ohtani’s recent contract agreement with the Los Angeles Dodgers has sent ripples through the sports community, not just because of the staggering $700 million value but also due to its unique structure. This deal, as reported by The Athletic’s Fabain Ardaya, involves a massive $680 million in deferrals, leaving Ohtani with an annual salary of just $2 million for the next ten years, followed by a whopping $68 million per year from 2034 to 2043. This innovative approach to player contracts raises an intriguing question: could other teams, like the Houston Astros, consider a similar strategy, especially to retain critical players like Jose Altuve, Alex Bregman, Kyle Tucker, and Framber Valdez?
The Astros face a critical period ahead, with the contracts of their championship core nearing expiration. Altuve and Bregman’s contracts end after 2024, while Tucker and Valdez could leave after 2025. While there’s optimism about Altuve staying with the Astros, the futures of Bregman and Tucker are still being determined. Could Houston employ a deferral deal to keep these talents?
However, replicating Ohtani’s deal seems more like wishful thinking than a practical option. Ohtani’s unique position as a global marketing icon affords him financial flexibility that players like Bregman and Tucker, despite their local endorsements, can’t match. This disparity makes a similar contract structure less feasible for them.
Another aspect to consider is the difference in financial situations between the Dodgers and Astros. The Dodgers, owned by Guggenheim Baseball Management, have a diverse ownership structure and stable revenue streams, cushioned by a robust fan base and a secure television contract. These factors allow them to engage in such financial arrangements without significant risks. In contrast, Jim Crane, the Astros’ principal owner, faces different economic dynamics. Although substantial, Houston’s market size and revenue potential need to reach Los Angeles’s levels. The team’s financial health is more sensitive to on-field performance, and their television contract could be more stable than the Dodgers’. These constraints make it unlikely for Crane to adopt a deferral-heavy agreement like Ohtani’s, especially for players like Bregman and Tucker.
If the Astros aim to retain their stars like Bregman or Tucker, they might need to follow the traditional route of upfront, substantial contracts. While the concept of deferral deals is fascinating and groundbreaking in Ohtani’s case, it’s not a one-size-fits-all solution. Each team’s financial situation, market dynamics, and ownership structure play crucial roles in determining the feasibility of such contracts. For the Astros, while creative contract structuring might be a topic of fan speculation, the reality of their situation suggests a more conventional approach to player retention.