Is the Los Angeles Dodgers’ spending bad for baseball?

The Los Angeles Dodgers have spared no expense this offseason. They spent over $1 billion to acquire big name free agent talent like Shohei Ohtani and Yoshinobu Yamamoto, as reported by ESPN. The contracts these two players commanded have the baseball world buzzing, but it begs the question as to whether this type of spending spree is good for the sport.

It’s no secret that teams located in New York, Boston, Chicago and Los Angeles have the most money to throw around when it comes to signing players. The Dodgers may have taken that reality one step further, and some might argue, one step too far. On the other hand, it may not be fair to penalize teams with inherent location advantages and storied histories, either.

The NBA, NFL and NHL have instituted hard salary caps that teams cannot go over without significant penalties. MLB’s salary cap exists, but it doesn’t have the same teeth as the threshold in the other sports. Until teams really feel the sting of spending at an alarming rate, the Dodgers and other big market teams might continue to liberally open their checkbooks.

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One could argue that Ohtani and Yamamoto have landed in the perfect place. Two Japanese stars playing on the west coast of the United States for one of the most popular teams in sports should maximize interest in baseball. Japanese fans would continue to consume MLB, which has been a consistent pipeline of talent for the game.

Ohtani and the Dodgers did something really interesting with the 10-year, $700 million pact. The star two-way player will only receive $20 million of that figure during the next decade, while the remaining $680 million will be paid out after that time frame, as reported by The Ringer. This significant deferral might allow the Dodgers to remain aggressive spenders during the prime of his career.

The Dodgers know better than anyone else that rosters on paper do not guarantee World Series titles. While Ohtani’s production at the plate seems like something fans can bank on, he may not pitch for a couple of seasons. Yamamoto’s first season in MLB might be an adjustment, which may also cap the potential of the team.

Los Angeles has been amongst the best regular season teams in baseball throughout the past decade, but only have one championship to show for it. Regardless of who is in the lineup or who fills out their rotation, the Dodgers will need to step up when it matters most, which is something that has eluded them in recent years.

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As if they weren’t well known enough, the Dodgers will have an additional target on their backs heading into the 2024 season. Anything short of a World Series appearance, and likely a World Series victory, will be deemed a failure for the organization. It’ll be interesting to see how they handle that pressure.

While spending a billion dollars in free agency is nothing to sneeze at, the organization hopes that they will recoup a lot of that money in other ways. The Dodgers own Spectrum SportsNet LA, which broadcasts their games. The network should see a spike in viewership, which should also boost ad revenue. Additionally, fans all over the world will buy Ohtani and Yamamoto jerseys.

As with most things in life, hindsight is 20/20, so fans will see how the Dodgers’ offseason spending pans out. There’s certainly a case to be made that they’ve unfairly shifted the competitive balance of the sport in their direction, but others will flock to their games in person and on TV because of the intrigue they’ve created.

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