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Remember when Disney bought the Star Wars franchise from George Lucas for $4 billion and everyone thought it was an absurd amount of money to spend, then the company quickly recouped that cost and reported a 2.9 times return on investment? The Dodgers seem to be experiencing a similar sensation with their superstar Shohei Ohtani.
When Los Angeles signed Shohei Ohtani to $700 million, the most lucrative contract the league had ever seen (by over $250 million dollars), it raised quite a few eyebrows. Many questioned whether it was outrageous to pay anyone that much money, let alone a two-way player limited to purely offense for at least the first season of that deal.
No one is questioning the Dodgers' huge financial gamble now — even after less than one season.
Not only because of Ohtani's hitting prowess and the historical statistics he put up in his first season as a Dodger, but also because of the economic revenue he has generated for the Dodgers and the league during that time.
Bloomberg News recently released a report estimating that Shohei Ohtani for the past year created an economic impact in the US and Japan of around ¥87 billion yen ($594 million). That's over 80% of his contract's value in year one of a ten-year deal.
Of course not all of that money goes directly back in the Dodgers' pockets, but the front office still has to be feeling pretty great about their investment.
Consider a simple concept like how much money the advertising along the Dodger's outfield wall is generating. In 2023, those ads are reported to have generated around $500,000. Now, USA Today is reporting that the advertising along that same outfield wall in 2024, for this season, “is generating $6.5 million this year, thanks to Shohei Ohtani.”
So Ohtani has generated thirteen times more revenue… along one wall at the stadium. For those familiar with Dodger Stadium, there's advertising all over the place at the Chavez Ravine landmark, not to mention merchandising, ticket sales, concession sales, and many other revenue generators that he has drastically impacted as well.
The Dodgers also this season announced a partnership between the team and DAISO, a Hiroshima, Japan-based retailer. As reported on the website Fansided, “DAISO’s involvement has proven highly successful, featuring premium signage behind home plate during broadcasts and acting as the presenting partner for Shohei Ohtani bobblehead giveaway night — an event that saw fans lining up eight hours before the first pitch.”
That event included giving away rare gold Shohei Ohtani bobbleheads, which in turn gave a huge boost to the sports memorabilia industry.
Fansided further notes that “attendance has surged as well, with the Dodgers selling out 19 of their 77 home games this season and averaging 48,451 fans per game.”
As for jersey sales, there are “three Dodgers players ranking in the top 20 for highest-selling jerseys. The team also benefits from Ohtani’s unique dual-market appeal, earning revenue shares from his jersey sales for both the Dodgers and his former team, the Angels.”
The Bloomberg report also compared Ohtani to that other global phenomenon, Taylor Swift. It's already been heavily reported how Swift's presence along her stops on The Eras Tour has boosted local economies, but a new detail that Bloomberg points out is how close Shohei Ohtani measures up with the reining pop superstar in terms of lucrative appeal.
Swift is estimated to have generated around $230 million during her four days of touring in Japan. Ohtani's numbers are pretty comparable — granted, to do it in four days is still rather impressive for Swift.
But anytime you're being mentioned in the same breath as Star Wars and Taylor Swift, you know you're in good financial company. Shohei Ohtani is more than earning his record-setting MLB contract (and then some). Now he just needs to generate some World Series trophies for the Dodgers and he'll truly prove priceless.
