The sudden sale of the Los Angeles Lakers has raised questions about whether Mark Walter, the CEO of Guggenheim Partners currently under federal investigation, will shop the Los Angeles Dodgers next. It has also spurred interest in the “key man” clause in star two-way player Shohei Ohtani’s contract, which would allow him to opt out of his deal if Walter or president of baseball operations Andrew Friedman left the organization
But it appears Ohtani plans to stay put, sale or not
Even if Walter were to sell the Dodgers in the near future, Ohtani is unlikely to exercise his key-man provision and opt out of his contract, according to a leaguee on the condition of anonymity because they are not authorized to speak about it publicly
While the key-man clause gave Ohtani flexibility when signing his 10-year, $700 million contract in December 2023, it is viewed by his camp as less of a concern in the present day, given that the Dodgers have proven to the superstar that baseball operations leadership and team leadership are a well-oiled machine. Most importantly, they have fulfilled the promise of re-investing the deferred money from Ohtani’s contract into enhancing the big-league roster. Ohtani’s management team harbors no concern about the Dodgers’ ability to function at the same level regardless of what happens with the Dodgers’ ownership moving forward, the source said.
Notably, Dodgers president and CEO Stan Kasten told reporters on Wednesday that Walter’s sale of the Lakers is unrelated to the Dodgers, stating definitively that “there are no changes here.”
Ohtani with Walter (left) and Friedman (right) at his introductory press conference in December 2023. (Kirby Lee / USA Today)
It’s virtually unprecedented across American sports for a player’s contract to contain a key-man clause. That one is written into Ohtani’s contract speaks to his remarkable pull and the leverage his camp held in free agency
Before the existence of a key-man clause in Ohtani’s contract was first reported in December 2023, the phrase had barely been mentioned in baseball circles in a decade. Most had only heard of one other instance of a key-man clause in a baseball contract. That one involved Friedman, too. When Friedman left the Tampa Bay Rays for the Dodgers in October 2014, it triggered a key-man clause that agent Alan Nero had negotiated into manager Joe Maddon’s contract. Maddon, who had led from the dugout as the Rays climbed from AL East doormat to consistent contender, had forgotten about the clause entirely.
“Andrew leaves, and I get a phone call that I have an opt-out clause,” Maddon later told The New York Times. “Otherwise I would not have known, I swear to you.”
Maddon elected free agency. In a 10-day span, the Rays lost both their manager and general manager. Soon after, Maddon signed a five-year, $25 million contract with the Chicago Cubs
Key-man clauses are common in some industries and for startups, yet in baseball they’re typically used when a senior executive and manager asks to be tied to a certain leader. Most of those instances are never reported publicly. Ohtani’s clause, on the other hand, was met with immediate intrigue. It was seen as a show of faith in Friedman’s front office and Walter’s leadership. (Nothing says job security like having an all-time talent stake his contract upon your continued employment.) To those inside the game, it came as a shock. Executives had never heard of a player having a key-man clause. Some agents hadn’t even thought to try adding one.
While the Collective Bargaining Agreements of some other U.S. pro sports leagues don’t allow key-man clauses, such an addition is perfectly permissible in MLB
At his introductory news conference with the Dodgers, Ohtani explained his reasoning for wanting the clause included
“Everybody has to be on the same page in order to have a winning organization,” Ohtani said through an interpreter. “I feel like those two are at the top of it and they’re in control of everything, and I feel almost like I’m having a contract with those two guys
“I feel like if one of them is gone, then like I said, (we) might not be on the same page, things might get a little out of control, so I just wanted like a safety net.”
The closest corollaries to Ohtani’s situation may be international superstars in other sports. Erling Haaland’s initial contract with Manchester City contained a clause linking him to then-manager Pep Guardiola. If Guardiola left the club, Haaland could leave for £150 million (roughly $200 million) after his second season. When Guardiola signed an extension, the release clause was removed from Haaland’s contract. The sides moved toward an eventual monster 10-year extension for Haaland
As uncertainty swirls around the Walter-led Dodgers ownership group, Ohtani is batting .292 with a league-leading .937 OPS and the team is in first place. He has remained in the lineup despite lingering left knee discomfort that scotched his Cy Young candidacy, leaving him stuck at 8-2 with a 1.79 ERA in 14 starts. Ohtani is signed with the Dodgers through the 2033 season. He will remain on their payroll until July 1, 2043. Whether it’s Walter who pays that bill remains to be seen
