How Shohei Ohtani can opt out of his $700 million contract with Los Angeles Dodgers

Shohei Ohtani's record-setting $700 million contract with the Los Angeles Dodgers allows him to opt out if owner Mark Walter or president of baseball operations Andrew Friedman leave the organization, according to an official with knowledge of the deal.

The person spoke to USA TODAY Sports on the condition of anonymity because the terms were not announced.

The opt-out is another unique part of of Ohtani's 10-year contract, the richest in baseball history.

The $700 million deal includes $680 million in deferred money, meaning the two-way superstar will be paid just $2 million per year for the next 10 years before getting the rest in installments from 2034 to 2043.

Giving him the opportunity to depart if the organization changes course in the years to come, the opt-outs provide Ohtani with security for the length of his deal.

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It's believed to be the first time this provision has been included in a player's contract, an MLB executive told USA TODAY Sports.

The contract states that "if specific change in Dodger personnel, player may opt out of contract at end of season the change occurs."

While this contract clause is new ground for a player, it's been done by managers. Notably, Joe Maddon was allowed to opt out of his deal with the Tampa Bay Rays in 2014 – due to Friedman leaving for the Dodgers.

Ohtani will be introduced at Dodger Stadium on Thursday afternoon.

Andrew Friedman, Mark Walter lead Dodgers

Friedman has been with the Dodgers' front office since departing Tampa Bay and the team has made the playoffs every year since, winning the 2020 World Series. Friedman became the then-Devil Rays' general manager at the age of 28 before the 2006 season and helped assemble a team that reached World Series in 2008.

Walter was part of the ownership group that bought the franchise in 2012. The club's chairman is also a co-owner of the WNBA's Los Angeles Sparks and Chelsea FC in the English Premier League. He owns all six teams in the Professional Women's Hockey League, which he helped found and begins play in 2024.