Why Shohei Ohtani Signed with the Dodgers: Full Contract, Free Agency Breakdown; Tyler Glasnow Trade

Jack Vita Show

Last week, two-time American League MVP Shohei Ohtani left the baseball world stunned, when he took to Instagram to announce that he was departing from the Los Angeles Angels in free agency and signing a record-setting, ten-year, $700 million contract with the Los Angeles Dodgers.

Rhett Bollinger has covered the Los Angeles Angels for MLB.com for the past five seasons. He had a front row seat for the ascension of Shohei Ohtani. Rhett returns to the Jack Vita Show to break down Ohtani's free agency, his decision to join the Dodgers, and how his contract will play out.

Ohtani's ten-year, $700 million deal is unprecedented both in its monetary value, and also in its structure. Ohtani will receive $2 million annually from 2024 through 2033. Between 2034 and 2043, Ohtani will collect $68 million annually from the Dodgers. This structure will allow the Dodgers to spend more money on surrounding Ohtani with talent over the next decade, while staying under the luxury tax threshold. Ohtani will make around $40 or $50 million per year in endorsement deals alone. If Ohtani is no longer living in California when he begins receiving his $68 million annual salary, he could potentially save a lot of money, by not having to pay California's 12.3% state income tax rate.

Rhett and Jack explain how Ohtani's contract works and how it benefits the Dodgers. They also discuss the impact of Ohtani's move. Was Rhett surprised that Ohtani broke the news himself? Will the $700 million be money well-spent for Los Angeles? What happens next for the Angels? How big of a loss is this for the Halos, and how do they replace him? Will the Angels be active this offseason?

Later, Rhett and Jack discuss the Dodgers' latest move: acquiring Tyler Glasnow and Manuel Margot from the Tampa Bay Rays in exchange for right-handed pitcher Ryan Pepiot and outfield prospect Jonny Deluca. Glasnow was entering the final year of his contract. Upon being traded, he signed a five-year, $135 million contract extension to stay put in LA for the foreseeable future. Rhett and Jack break down the trade, and the latest happenings from the MLB offseason. Find out why Jack likes what the Kansas City Royals are doing.

You can follow Rhett on Twitter (@RhettBollinger) and follow his work at MLB.com and Angels.com.