What If Ohtani Had Joined the Blue Jays?

?? Hey everyone, happy to be back with a new article about a subject that was on every sports fan's lips over the weekend : the fate of Shohei Ohtani and his potential signing with the Toronto Blue Jays.

One of the biggest free agents in the history of professional sport, Shohei Ohtani, has finally announced his next destination... the Los Angeles Dodgers . Aside from Didier Drogba joining the Montreal Impact in 2015 and John Tavares joining the Toronto Maple Leafs in 2018, I don't remember a free agent potentially coming to Canada making this much noise.

For those of you who aren't familiar with him, Shohei Ohtani is a baseball superstar from Japan who played his last six seasons with the Los Angeles Angels in the MLB. While in the past, franchise players were well known for playing multiple positions on a team (ex. Babe Ruth), Ohtani is one of the few players today who can pitch and hit at the highest level. An extreme example of this would be to imagine a player like Connor McDavid being able to play defense one shift and offense the next, and be the best on his team at both positions.

That said, among the finalist teams to sign him, Canada's only baseball team, the Toronto Blue Jays, were in the running until the very last minute... or maybe not. Now that his fate is done and my initial article is ruined, I still wanted to write what he would have meant to the Blue Jays.

In Today's Edition, we discuss :

• How the rumours started? ??
• What it would've meant for the Blue Jays? ??
• Why it would've made sense for the Blue Jays? ??
• How it would've worked salary wise? ??

How the rumours started? ??

Thursday afternoon 3:35pm - Burner account tweets that a private jet from Anaheim (Ohtani's home) is flying to Toronto on Friday.

Friday morning 9:09am - Jon Morosi paints Blue Jays as favorite to land Ohtani with a potential same-day announcement on MLB Network.

Friday morning 9:42am - Clarence Frazer sarcastically announces a huge reservation was made at sushi restaurant near Rogers Centre.

Friday afternoon 1:53pm - DodgersNation reporter J.P. Hoornstra announces that Ohtani has signed with the Blue Jays.

Friday afternoon 2:01pm - JaysJournal reporter Eric Treuden also claims Ohtani is expected to sign with the Blue Jays.

Friday morning 4:01pm - Jon Morosi confirms that Ohtani IS on said previously flight going to Toronto.

Friday afternoon 4:16pm - 9000 persons are watching the flight radar including the entire Sportsnet team who are glued to their screens.

Friday afternoon 4:36pm - MLB's social media team retweets Jon Morosi news, further intensifying rumors

Friday night 5:11pm - Bob Nightengale confirms Ohtani is NOT on said previously flight going to Toronto.

Friday night 5:54pm - Devin Heroux confirms Canadian businessman Robert Herjavec and his family were on said previously flight, not Ohtani. Herjavec is also a CAA client which might have caused the initial confusion...

Saturday afternoon 3:05pm - Shohei Ohtani announces his commitment to the Los Angeles Dodgers for the next seven seasons. The $700M deal makes him the highest-paid athlete in North American Sports history.

In the closing of Shohei Ohtani's free agency, conspiracy theorists now suggests that Ohtani was already convinced with the Dodgers and that his agent, in an effort to obtain a better offer, leaked the false rumours - this move being a potential tactic to force the Dodgers into presenting a better, last-minute offer to secure Ohtani.

Anyways... this whole saga definitly serves as a reminder for journalists to adhere to higher standards, reminding them the values and ethics of journalism. It re-emphasize the importance of resisting the temptation to break unconfirmed news at all costs in this new digital age

What it would've meant for the Blue Jays ??

There is no doubt that the potential signing of Shohei Ohtani would have been a pivotal moment for the Toronto Blue Jays, both on and off the field. The impact of such a move would have extended far beyond the baseball mound, tapping into various facets of the sports industry and beyond.

Here’s what it would have meant for the Blue Jays:

• Increased Sponsorship Opportunities: The signing could have opened doors for lucrative sponsorship deals, not just with brands like A&W, but also with Japanese brands (ex. Nintendo), leveraging Ohtani's immense popularity in his home country.
• Boost in Merchandise Sales: Similar to the Lionel Messi effect with Inter Miami, Ohtani's arrival necessarily would have led to a significant boost in merchandise sale for the Jays.
• Ticket Demand and Prices: The rumours of Ohtani coming to Toronto had already spiked ticket prices for next season...
• Capturing the Asian Fanbase: Just as the Phoenix Suns are capitalizing on the Chinese market with Kevin Durant and the Kansas City Chiefs are targeting the German market with international games, Ohtani would have positioned the Blue Jays to capture a significant portion of the Asian fanbase.
• Increased Visibility and Ratings: American and international media (mostly japanese) would have likely increased their coverage of the Blue Jays, enhancing their visibility and ratings. Ohtani's presence would have also solidified the Blue Jays as a top Canadian brand, expanding their recognition not just nationally, but also on an international stage.

Why it would've made sense for the Blue Jays ??

The idea of the Toronto Blue Jays pursuing Shohei Ohtani made a lot of sense with the strategic vision of their parent company, Rogers Communications. Ohtani, a standout two-way player with immense international appeal, is a unique blend of sporting excellence and marketing potential. The move would have complemented very well their ongoing efforts to enhance team competitiveness and fan engagement.

Here is why it would have made sense for the Blue Jays :

• Rogers' Business Strategy: As Steve Simmons noted, Rogers, the parent company of the Blue Jays, could've shifted their entire focus from hockey to baseball by dropping their NHL rights in 2026.
• Boost to Rogers Brand: Ohtani's signing could have elevated the Rogers brand, potentially increasing its appeal and maybe even boost package sales of phones and TV.
• Enhancing Rogers Centre Experience: Following up on the momentum of recent renovations at Rogers Centre, Ohtani's presence would probably have added excitement and innovation to the future look.
• Expanding Premium Seating and Experiences: The recent partnership with Legends for high-end experiences at the Rogers Centre would have greatly benefited from Ohtani's star power, improving the ability to sell premium seats and exclusive experiences.
• Leveraging Ohtani’s Global Popularity: The commercialization of Ohtani, who has a larger following than the Blue Jays (6,4m vs 1.6m on IG), would have significantly boosted the team's global brand and appeal.
• Potential Tournaments in Japan: Similarly to Inter Miami attempted tour in China this summer, Ohtani’s could have opened up a lot of opportunities for the Blue Jays to participate in lucrative promotional tours in Japan.
• Growing Baseball in Canada: As the competition for youth sports registrations in Canada continues, Ohtani's signing could have greatly contributed to the Blue Jays’ mission to grow baseball in Canada.

How it would've worked salary wise ??

As reported by Front Office Sports, the 10 years-$700M-contract of Ohtani is worth more than 6 NHL franchises and 23 MLS franchises. It is also worth more annually than the entire salary cap of 8 MLB teams. As many of you, I also asked myself : how does it even make sense financially to pay a player that much? The increased opportunities mentionned above should be sufficient. However, a team can also financially play into the payment of the contract to reduce immediate burden.

My focus here will be to break down how a team like the Blue Jays can use a deffered plan to execute the payment of such contract and also highlight that Toronto was not such a disadvantageous market for Ohtani compared to Los Angeles.

DEFERRED SALARY

As reported, it is rumoured that the Los Angeles Dodgers used a deferred salary plan to sign Ohtani. Here's a hypothetical potential scenario of the $700 million contract over 15 years, with 7 playing years (2024-2030) and 8 additional years of deferred payments (2031-2038).

To benefit both Ohtani and the Dodgers, there is an effort to balance the annual salary during playing years to ensure competitive pay while keeping the team's payroll manageable, and then spread out the remaining salary over the deferral period.

• During Playing Years (2024-2030): Ohtani receives $60 million per year, providing him a substantial annual income and allowing the Dodgers to manage their payroll effectively.
• During Deferred Years (2031-2038): Ohtani receives $35 million per year. This lowers his annual income, potentially reducing his tax burden depending on the tax laws.

BENEFITS

• For Ohtani: Spreading income into retirement years can potentially lower his annual tax liability.
• For the Dodgers: Helps in managing the team's annual payroll, and allocating resources for other players.

DISCLAIMERS

• This plan doesn't consider the specific tax laws, inflation, or the time value of money.
• Future tax rates and laws are uncertain, and they can significantly impact the actual benefit of this plan.

TORONTO VS LOS ANGELES

$70m annual salary

• Federal Tax : TOR $23.1m (33%) vs LA $25.9m (37%)
• Provincial/State Tax : TOR $9.21m (13%) vs LA $4.65m (7%)
• Agent Fee : $2.1m
• Jock Tax : $2m
• FICA/Medicare : Toronto $0.0036m vs LA $1.64m

Net income = Approx. $33.6m for both teams

My Final Thoughts ??

In conclusion, the Toronto Blue Jays' inability to sign Shohei Ohtani represents a significant missed opportunity, not just for the team, but for the Canadian sports industry as a whole. Such a move could have set a new benchmark, compelling other major players like Maple Leaf Sports & Entertainment (MLSE) to elevate their game, creating a ripple effect that benefits all Canadians sports teams.

Share Your Thoughts ??

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