Top 10 Most Expensive Baseball Contracts In The World
Joseph D'Souza
Updated · Mar 14, 2025
TABLE OF CONTENTS
- Introduction
- History of Baseball Contracts
- Reason Behind Baseball Players Get Such Expensive Contracts
- Risk Factors of Expensive Baseball Contracts
- Top 10 Most Expensive Baseball Contracts In The World
- #1. Shohei Ohtani’s Contract with the Los Angeles Dodgers
- #2. Juan Soto’s contract with the New York Mets
- #3. Max Scherzer’s contract with the New York Mets
- #4. Justin Verlander’s contract with the New York Mets
- #5. Zack Wheeler (Phillies) agreed to a contract extension in March 2024
- #6. Aaron Judge re-signed contract with the New York Yankees.
- #7. Alex Bregman signed a contract with the Boston Red Sox
- #8. Jacob deGrom signed a significant contract with the Texas Rangers.
- #9. Blake Snell signed a contract with the Los Angeles Dodgers.
- #10. Mike Trout signed contract extension with the Los Angeles Angels
- Conclusion
Introduction
Top 10 Most Expensive Baseball Contracts: Baseball players sign very large contracts worth millions of dollars. Some of the biggest deals in history show how much teams value top athletes. These contracts reward players for their talent, experience, and influence on the sport. Power hitters and top pitchers often receive the highest salaries.
Teams spend huge amounts of money, expecting these players to help them win championships. However, high salaries also put pressure on employees to perform well. Some contracts turn out to be great investments, while others fail to meet expectations. This article looks at the most expensive baseball contracts, why teams pay so much, and their impact on the game.
History of Baseball Contracts
- From 1879 to 1975, the Reserve Clause permanently tied players to their teams. They had no choice but to negotiate better pay or join another team.
- In 1969, Curt Flood challenged this rule after being traded. He claimed players had no freedom, but he lost his legal fight.
- In 1975, Arbitrator Peter Seitz ruled in favor of Andy Messersmith and Dave McNally, ending the Reserve Clause. This gave players the right to become free agents.
- By 1976, free agency was introduced. After playing for a certain number of years, players could sign contracts with any team. This change led to higher salaries and more player movement.
- In 1979, Nolan Ryan made history by signing a four-year contract worth USD 4.5 million with the Houston Astros. He became the first player to earn over USD 1 million per year.
- Player salaries increased rapidly during the 1980s and 1990s. By 1989, top players like Kirby Puckett and Rickey Henderson were earning USD 3 million annually.
- The 2000s saw record-breaking contracts. In 2000, Alex Rodriguez signed the largest 10-year deal at the time, worth USD 252 million,
- In the 2020s, teams began using deferred contracts to manage payrolls. For example, in 2024, the Los Angeles Dodgers signed Shohei Ohtani to a 10-year, USD 700 million contract with deferred payments.
- Media deals have also increased salaries. The Dodgers’ USD 8.35 billion broadcasting deal greatly boosted team revenues.
Reason Behind Baseball Players Get Such Expensive Contracts
- Major League Baseball (MLB) lacks a salary cap, allowing teams to spend freely on player contracts.
- Increased revenues from TV deals and merchandise enable teams to offer larger contracts.
- After six years, players can negotiate with any team, often leading to lucrative deals.
- Skilled agents, like Scott Boras, secure record-breaking contracts for their clients.
- Exceptional skills and statistics justify higher salaries for top players.
- Teams in large markets, like New York, generate more revenue, allowing bigger contracts.
- Teams exceeding payroll thresholds pay a tax but can still offer high salaries.
- Past deals, such as Alex Rodriguez’s USD 252 million contract, set precedents for future salaries.
- Lucrative broadcasting agreements provide teams with funds to pay players more.
- Popular players boost ticket sales and merchandise, encouraging teams to invest heavily in talent.
Risk Factors of Expensive Baseball Contracts
- If a player gets injured, a long-term contract can be a problem because the player cannot play as expected.
- Over time, a player’s skills may decline, making their high salary unfair compared to their performance.
- Large contracts can limit a team’s ability to sign other talented players, affecting overall competitiveness.
- Going over payroll limits can lead to luxury taxes and add financial pressure.
- Long-term contracts can make it harder for teams to adjust their roster and plan strategies.
- Changes in the market may make existing contracts less valuable, affecting a team’s budget.
- Spending too much on experienced players might reduce chances for young talent to grow.
- High salaries can make it challenging to trade underperforming players, restricting roster adjustments.
Top 10 Most Expensive Baseball Contracts In The World
- Shohei Ohtani (Dodgers) signed a USD 70 million contract in December 2023.
- Juan Soto (Mets) signed a USD 51 million contract in December 2024.
- Max Scherzer (Mets) signed a USD 43.33 million contract as a free agent in November 2021.
- Justin Verlander (Mets) signed a USD 43.33 million contract in December 2022.
- Zack Wheeler (Phillies) agreed to a contract extension in March 2024 worth USD 42 million per year.
- Aaron Judge (Yankees) signed a USD 40 million contract in December 2022.
- Alex Bregman (Red Sox) signed a USD 40 million contract in February 2025.
- Jacob deGrom (Rangers) signed a USD 37 million contract in December 2022.
- Blake Snell (Dodgers) signed a USD 36.4 million contract in November 2024.
- Mike Trout (Angels) signed a contract extension for USD 36 million in March 2019.
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#1. Shohei Ohtani’s Contract with the Los Angeles Dodgers
(Source: wikipedia.org)
- Shohei Ohtani signed a 10-year contract worth USD 700 million.
- He earns USD 70 million per year.
- About 97.1% of his salary, nearly USD 68 million per year, is delayed as deferred payments.
- These deferred payments will be made between 2034 and 2043.
- Because of the deferrals, MLB set his Average Annual Value (AAV) at USD 46.06 million for luxury tax calculations.
- The MLB Players Association estimated his AAV at about USD 43.78 million.
- This contract structure helps the Dodgers manage their payroll more easily.
- Ohtani benefits from long-term financial security.
- The Dodgers designed this deal to balance high spending while controlling luxury tax costs.
#2. Juan Soto’s contract with the New York Mets
(Source: wikipedia.org)
- Total Value: Juan Soto signed a 15-year contract worth USD 765 million.
- Average Annual Value (AAV): He will earn USD 51 million per year.
- Signing Bonus: He received USD 75 million when signing the deal.
- Opt-Out Clause: Soto can leave after the 2029 season if the Mets do not accept a club option that increases his salary by USD 4 million yearly from 2030 to 2039.
- Deferred Payments: Part of his salary will be paid later, between 2034 and 2043.
- Luxury Tax Effect: MLB set its luxury tax AAV at USD 46.06 million, while the MLBPA calculated it at USD 43.78 million.
- Other Offers: Soto got bigger offers from teams like the Red Sox, Blue Jays, Dodgers, and Yankees, but he still picked the Mets.
- 2024 Performance: With the Yankees, he had a .288 batting average, hit 41 home runs, and got 109 RBIs.
- Impact on the Mets: Soto is now the team’s star player and could help them become stronger competitors.
#3. Max Scherzer’s contract with the New York Mets
(Source: wikipedia.org)
- Contract Duration: 3 years.
- Total Value: USD 130 million.
- Average Annual Value (AAV): USD 43.3 million, the highest in MLB history at that time.
- Previous AAV Record: Gerrit Cole’s USD 36 million with the New York Yankees.
- Jersey Number: Wears number 21 with the Mets.
Debut with Mets: April 8, 2022, against the Washington Nationals. - Performance Milestone: Achieved his 200th career win on September 19, 2022.
- 2022 Season Highlight: Contributed to the Mets’ first playoff appearance since 2016.
- Postseason Performance: Faced challenges in the 2022 Wild Card Series against the San Diego Padres.
- Agent: Represented by Scott Boras during contract negotiations.
#4. Justin Verlander’s contract with the New York Mets
(Source: wikipedia.org)
- Contract Duration: 2 years (2023 to 2024)
- Total Contract Value: USD 86.7 million
- Average Annual Value (AAV): USD 43.3 million
- Vesting Option: USD 35 million for 2025
- AAV Ranking: Tied for highest in MLB history at the time, matching Max Scherzer’s contract.
- 2023 Season Start: Placed on 15-day injured list due to a low-grade teres major strain.
- Mets Debut: May 4, 2023, against the Detroit Tigers.
- Milestone Achievement: On May 10, 2023, became the 21st MLB pitcher to defeat all 30 teams.
- 250th Career Win: July 30, 2023, against the Washington Nationals.
- Trade to Astros: Returned to Houston Astros on August 1, 2023.
- Subsequent Move: Signed a one-year, USD 15 million contract with the San Francisco Giants on January 11, 2025.
#5. Zack Wheeler (Phillies) agreed to a contract extension in March 2024
(Source: wikipedia.org)
- Contract Duration: Covers three years from the 2025 to 2027 seasons.
- Average Annual Value (AAV): Wheeler will earn USD 42 million per year.
- Historical Significance: This deal set a record for the highest AAV in MLB history for a contract extension.
- Overall Ranking: Wheeler’s AAV is the third highest among MLB pitchers, behind Max Scherzer and Justin Verlander.
- Performance Before Extension: In 2023, he had a 13–6 record, a 3.61 ERA, and 212 strikeouts over 192 innings.
- Previous Contract: Before this deal, he was in the final year of a five-year, USD 118 million contract signed in December 2019.
- Age at Signing: He was 33 years old when he signed the extension.
- Career Highlights: In 2023, Wheeler earned his first Gold Glove Award.
- Team Commitment: The Phillies’ investment in Wheeler proves their confidence in his skills and their aim to maintain a strong pitching team.
#6. Aaron Judge re-signed contract with the New York Yankees.
(Source: wikipedia.org)
- Duration: The contract lasts for 9 years, from 2023 to 2031.
- Total Value: It is worth USD 360 million in total.
- Average Annual Value (AAV): The player earns USD 40 million per year.
- Contract Type: This was a free-agent re-signing.
- Signing Date: The deal was signed on December 20, 2022.
- Captaincy: After signing, Judge became the 16th captain in Yankees history.
- Historical Context: At the time, this was the biggest free-agent contract in MLB history.
- Performance Clause: No details were shared about any performance-based incentives in the contract.
- Deferred Payments: The contract does not involve any deferred payments.
- Comparison: This contract matches Alex Bregman’s annual salary of USD 40 million with the Boston Red Sox, ranking among the highest in MLB history.
#7. Alex Bregman signed a contract with the Boston Red Sox
(Source: wikipedia.org)
- Contract Duration: Three years (2025 to 2027).
Total Value: USD 120 million. - Average Annual Value (AAV): USD 40 million per year.
- Opt-Out Clauses: Bregman can opt out after the 2025 and 2026 seasons.
- Position Considerations: His primary position is third base, currently held by Rafael Devers.
- Potential Position Shift: Bregman has expressed willingness to play second base if necessary.
- Luxury Tax Implications: Due to deferrals, the Competitive Balance Tax (CBT) AAV is approximately USD 31.7 million.
- Previous Team: Bregman played for the Houston Astros from 2015 to 2024.
- Career Highlights: Two-time All-Star and World Series champion.
- Impact on Team Dynamics: His signing creates a positional dilemma with Devers, requiring strategic decisions.
- Financial Comparison: The Chicago Cubs reportedly offered USD 115 million over four years, which Bregman declined.
#8. Jacob deGrom signed a significant contract with the Texas Rangers.
(Source: wikipedia.org)
- Contract Value: USD 185 million over five years.
- Average Annual Value (AAV): USD 37 million.
- Contract Start Date: December 2, 2022.
- Age at Signing: 34 years old.
- 2023 Performance: Made six starts with a 2.67 ERA and 45 strikeouts over 30.1 innings.
- Injury in 2023: Underwent Tommy John surgery on June 6, 2023, due to a torn UCL.
- 2024 Return: Returned to MLB action on September 13, 2024, after 504 days, pitching 3.2 scoreless innings.
- 2025 Spring Training: Debuted on March 8, 2025, delivering two perfect innings with three strikeouts.
- Career ERA: Holds a 2.52 ERA over 218 career starts.
- Career Strikeouts: Accumulated 1,666 strikeouts in his MLB career
#9. Blake Snell signed a contract with the Los Angeles Dodgers.
(Source: wikipedia.org)
- Contract Duration: 5 years
- Total Contract Value: USD 182 million
- Average Annual Value (AAV): Approximately USD 36.4 million per year
- Deferred Payments: USD 60 million deferred
- Deferred Payment Period: 2029 to 2033
- Signing Bonus: USD 52 million
- Conditional Option: USD 10 million for the 2030 season.
- Luxury Tax Implications: Deferred payments help manage luxury tax liabilities.
- Team’s Deferred Obligations: Contributes to Dodgers’ nearly USD 1 billion in deferred compensation.
- Player’s Previous Teams: Tampa Bay Rays, San Diego Padres, San Francisco Giants.
#10. Mike Trout signed contract extension with the Los Angeles Angels
(Source: wikipedia.org)
- Duration: 12 years, extending through the 2030 season.
- Total Value: USD 426.5 million.
- Average Annual Value (AAV): Around USD 35.54 million per year.
- Previous Record: Surpassed Bryce Harper’s 13-year, USD 330 million contract with the Philadelphia Phillies signed earlier in March 2019.
- Performance During Contract: 2019 Season (Hit a career-high 45 home runs) and 2019 Awards (Won the American League MVP for the third time and the Hank Aaron Award).
- Injury Note: Underwent surgery in September 2019 to remove a neuroma from his right foot, ending his season early.
Conclusion
Expensive baseball contracts give top players huge salaries, but they also create risks for teams. While star players bring more fans and better performance, long contracts can hurt teams if players get injured or underperform. Teams must carefully decide if a high-cost deal is worth it. Some contracts help teams win championships, while others become a big financial problem.
In the end, spending a lot on one player can be a smart move or a mistake. Teams should balance talent, budget, and plans to make the best decision for success.
Sources
FAQ.
Do expensive contracts always help teams win?
No, expensive contracts don’t always guarantee wins. Teamwork, strategy, and skill matter more than just spending money on players.
How long do expensive baseball contracts usually last?
Expensive baseball contracts usually last 7 to 12 years, but some deals can be longer, depending on the player’s value.
What is the highest baseball contract ever signed?
As of March 2025, the highest baseball contract ever signed is Juan Soto’s USD 765 million deal.
Do all expensive contracts include guaranteed money?
No, not all expensive contracts include guaranteed money; some depend on performance, conditions, or team decisions for payment.
Do expensive contracts hurt a team’s future?
Yes! Costly contracts limit a team’s budget, making it harder to sign new players and build a strong future team.
Joseph D'Souza
Joseph D'Souza started Coolest Gadgets in 2005 to share his love for tech gadgets. It has since become a popular tech blog, famous for detailed gadget's reviews and companies statistics. Joseph is committed to providing clear, well-researched content, making tech easy to understand for everyone. Coolest Gadgets is a trusted source for tech news, loved by both tech fans and beginners.
