Jayson Tatum vs Shohei Ohtani Contracts: NBA’s Richest Deal Compared to Biggest Payout in Sports History

With most major sports leagues generating the kind of money never seen before, the salaries of athletes have reached an all-time high. Until yesterday, Jaylen Brown was the owner of the richest contract in NBA history with his five-year $304 million extension that he signed last year. But earlier today, he was one upped by his teammate Jayson Tatum, who bagged a five-year $315 million supermax extension, taking the crown from JB.

But while Tatum has surpassed his co-star and the rest of the league in contract value, he still has a long way to go before he can match the historic contract of MLB star Shohei Ohtani.

Shohei Ohtani’s historic contract

Just like Tatum did today, Ohtani also created history back in December when he signed an unprecedented ten-year $700 million deal with the LA Dodgers, the richest deal in sports history. As per the deal, he would make $70 million each year, amounting to only $33.6 million reaching his bank account after multiple tax deductions, including $25.9 million in federal tax and the remaining in California tax, agent fee, jock tax and FICA/medicare payments. Despite the massive deductions, Ohtani surpassed the previous biggest contract in league history, which was owned by Angels’ Mike Trout with his twelve-year $426.5 million deal signed five years ago.

However, Ohtani’s deal was far more complex than that. As it turns out, the two-time MVP had agreed to defer $680 million of his contract and it would now be paid out to him every year on the first day of July from 2034 to 2043 in $68 million installments. With that clause, he will only earn $2 million in annual salary during his tenure with the Dodgers for the next decade. Surprisingly, it was reportedly Ohtani’s idea to go this route because the available money would allow the Dodgers to attract more star players to the team to join forces with Ohtani over the next ten years. And the Dodgers did exactly that as they signed Teoscar Hernandez, Tyler Glasnow, and Yoshinobu Yamamoto soon after the Ohtani deal.

While Ohtani’s $700 million contract does seem like a massive number, because of his deferred clause, the net present value of his contract is only $437.5 million after adjusting to inflation and other factors. Maybe, that somehow makes it a little less impressive than it previously looked. Regardless, the deal secures Ohtani’s long-term future and gets him guaranteed money for the next twenty years while also giving him better chances to win with the Dodgers. “This is a unique, historic contract for a unique, historic player.” His agent Naz Balelo remarked after Ohtani signed the massive contract. While the value of Ohtani’s biggest payout in sports history decreases remarkably following tax deductions and adjusted inflation, same is also the case with Jayson Tatum’s new contract.

How much will Jayson Tatum earn in his new deal?

While Tatum can now proudly call himself the owner of the largest contract in NBA history, it also comes with a lot of underlying conditions. For starters, his $315 million deal will begin next year after the end of the 2024-25 season and will likely keep him in Boston until the end of this decade. Moreover, JT also has a player option for the final year of his deal along with a fifteen percent trade kicker, which makes it almost certain that the Celtics have no intention of trading him anytime soon. And why would they after he led them to their eighteenth title this year? Opting into the player option will earn him $71.4 million in salary during the 2029-30 season, the highest annual NBA salary ever.

But just like Ohtani, Tatum will realistically not make the number that is displayed on his contract. Out of his $62.7 million average annual salary, only $25.2 million will reach Tatum’s bank account. Well, as for the rest of the money, $23.2 million will be deducted in Federal tax, $4.7 million in Jock Tax, a whopping $8.1 million in escrow and agent fee and the remaining $1.4 million in FICA and medicare payments. Moreover, JT might soon lose this title to his this year’s finals opponent Luka Doncic, who will be eligible to sign an even bigger five-year $346 million extension this time next year. But for now, Tatum can pride on his historic achievement as he deserves every penny he is getting.

Averaging 26.9 points this season and leading the Cs to the top seed, JT gave it his all to bring a title to Boston. And after achieving his goal, he deserves to be rewarded. Meanwhile, his richest contract in league history and Shohei Ohtani’s $700 million payout only shows the trajectory that the sports world is heading toward, which is an amazing thing for every athlete.

Before you go, do not forget to check out what Shaquille O’Neal’s ex-agent, Leonard Armato has to say about the alleged Shaq and Kobe Lakers beef. Keep checking this space for more such updates.