Juan Soto’s new contract has made history, but there are some problems with it.
The new New York Mets star agreed to a 15-year, $765 million contract with his former team’s rival on Sunday night. The contract not only surpasses the $700 million contract Shohei Ohtani signed with the Los Angeles Dodgers last season, but it is also the largest contract in North American sports history.
Here’s what else we know.
There is no deferred fee
Unlike Ohtani’s contract, Soto will receive zero deferred compensation, according to ESPN. Ohtani notably had $680 million of his $700 million contract deferred, bringing the average annual contract value for Competitive Balance Tax purposes down to $46 million, as estimated by MLB. So, the $51 million average annual value of Soto’s contract would be the richest in MLB history, at least as it relates to the luxury tax.
It could end up costing more than $800 million
As part of the deal, Soto received a $75 million signing bonus, according to FOX Sports’ Ken Rosenthal.
But the deal has the potential to get even richer. It also includes an escalator that could bring its value to more than $800 million, according to ESPN.
There is an opt-out clause
The deal also allows Soto to become a free agent in his prime. Soto, 26, will opt out following the fifth season of his contract in 2028 when he turns 31, according to multiple reports.
However, the Mets could seal Soto’s exit if they exercise that option. In that event, New York will increase the average annual value of his contract from $51 million to $55 million over the final 10 seasons of the deal, according to Rosenthal.
Soto turned down big money offers from the Yankees and Red Sox
Soto also rejected multiple offers worth at least $700 million. His former team, the New York Yankees, gave him a 16-year, $760 million deal, the New York Post reported. With the Yankees’ total offer dwindling, Soto’s old club was believed to be the frontrunner to land him before Mets owner Steve Cohen “came in from the top line,” to make the deal, SNY reported. .
The Boston Red Sox, who also owned Soto, made an offer worth nearly $700 million over 15 years, per MassLive. It was reported earlier in the week that the Toronto Blue Jays had a bid that rivaled what other sweepstakes teams were bidding at the time, while the Dodgers were a little behind.
While anyone would be happy to be in a position to raise $700 million, Soto seemed happy with his decision on Sunday. His brother posted a video on social media of Soto being sprayed with drinks, ending the most expensive sweepstakes in North American sports history.
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