TL;DR - Scouting Report
Shohei Ohtani’s $700M deal is a global marketing jackpot for the MLB, redefining its sponsorships with $70M generated in revenue in 2024, and uniting fans from LA to Tokyo.
Start the Rally: Tweet This Now!Shohei Ohtani’s $700 million contract isn’t just historic – it’s transforming MLB’s global reach, driving millions of dollars in sponsorships in 2024, and uniting fans from Los Angeles to Tokyo.
How Shohei Ohtani Redefined MLB Sponsorships
The Dodgers have immediately reaped the rewards of signing superstar Shohei Ohtani to a 10-year, $700 million contract on December 9, 2023.
Right away, the Dodgers added 12 Japanese-based partners and a total of $70 million in incremental sponsorship revenue, according to research firm SponsorUnited.
Ohtani’s impact is felt in many places – including in Los Angeles, where in Little Tokyo, a fan could see a 150-foot mural of Ohtani on the side of the Miyako Hotel, painted by Robert Vargas. But that’s just one of many places you could expect to see Ohtani throughout Los Angeles, Southern California, the United States, and really, worldwide.
“Every time he played an away game, if you looked at any backstop, you saw Japanese brands that are advertising with the Orioles, Yankees or whoever he’s (Ohtani) playing against,” said Bob Lynch, CEO of SponsorUnited.
It’s estimated that teams hosting the Dodgers generated roughly $15 million in cumulative revenue from Japanese brands signing deals for those games.
A New Era for MLB Sponsorship Revenue
Also introduced to the MLB in 2024 was jersey patches and helmet logos.
With Ohtani’s help, nearly $300 million was generated in new sponsorship business last season. It reached $1.84 billion across the league, according to SponsorUnited. This is an increase of 36 percent over the past three seasons.
MLB Sponsorship Growth in Comparison to the NFL
It’s important to note that only the NFL, estimated to have generated $2.3 billion during the 2023 season, exceeds the MLB. Though, no league is growing faster than the MLB.
No major sports league has as many brands advertising with it, either. The MLB’s 2,263 brands is easily the most among the four major sports. The same is true of their 3,535 total sponsorship deals.
Franchises are placing a strategic initiative of reaching interested and captive audiences more efficiently, going away from the tired emphasis in advertising on luxury suites and premium seating experiences.
Record-Breaking Viewership in Japan and Beyond
An average of 12.9 million viewers watched each of the five World Series games in Japan – the most-watched World Series in the country’s history.
For comparison’s sake, the United States averaged 15.8 million viewers watching the Dodgers take down the Yankees in five games.
Game 2 was watched by 15.9 million viewers in Japan. This is the most-watched postseason game in Japan’s history, according to the MLB. In this game, Dodgers pitcher Yoshinobu Yamamoto started the game and held the Yankees to just one run and one hit in 6 1/3 innings pitched.
It’s not like these games are played during Japanese primetime, either. Tokyo is 16 hours ahead of Los Angeles, giving a first pitch time of roughly 9:07 a.m. in Tokyo through Fuji TV, NHK BS and J Sports.
Another interesting tidbit – while Los Angeles was the top market with an 18.9 rating and 53 share, New York was second, but not alone, with a 12.4 rating and 41 share. The other city? You guessed it, San Diego.
Click here to see more from a paid article from Forbes.
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