Shohei Ohtani Ohtani is most certainly a future Hall-Of-Fame player. But let’s focus on something different. He suffered a financial loss of $16 million.
Loss: $16 Million, Misplaced Trust. Ohtani is an example of misplaced trust, one of the ways that baseball players have suffered financial loss. Recently, his friend was employed by the Dodgers to translate. More significantly, for many years, Ohtani employed his friend as his manager and assistant. Sadly, that position of trust was used to financially harm Ohtani.
“In addition, Victim A [Ohtani] separately employed MIZUHARA to act as a de facto manager and assistant for Victim A.” — page 24 of criminal complaint.
Ignoring his $700 million in future earning from the Dodgers, and ignoring his future endorsem*nt income, Ohtani’s current net worth was about $50 Million. From that perspective, he lost 32% of his current net worth, which was significant.
Loss: Banned for Life and Prison for 5 Months, Ignored Two Rules. Unlike Ohtani, MLB wanted a hearing to address whether Pete Rose bet on baseball. After a messy battle in the courts, Pete Rose signed an agreement with baseball commissioner Bartlet Giamatti agreeing to a lifetime ban but not admitting to betting on baseball. Also, Pete Rose was voted ineligible for the Hall of Fame.
Pete Rose ignored an IRS rule about reporting income. In 1990 he was sentenced to five months in the medium security prison camp at the United States Penitentiary in Marion, Illinois, and fined $50,000. He paid $366,041 in back taxes and interest.
Loss: $50 Million, Too Many Eggs in One Basket. Former Diamondback Curt Schilling earned $114 Million playing baseball (Spotrac). Near the end of his career, in 2006 he founded a video game development company, Green Monster Games. In 2012, when the company (renamed 38 Studios LLC) declared bankruptsy, he lost his lifetime savings, which was about $50 million. Let’s quickly note that (assuming 40% taxes) he spent about $17.4 million during his years in the Majors, which is extravagent. In November 2023, his current net worth was estimated at $1 Million.
Loss: $25 Million, Performance Enhancing Drugs. In 2009, Alex Rodriguez admitted he took steroids from 2001 to 2004 with the Rangers. Although he tested positive in 2003, it was an anonymous survey (or more accurately temporarily anonymous) to evaluate the problem. For four years (2005 to 2008), he might have stopped using steroids. Then evidence emerged that connected him with the Biogenesis Clinic (and steroids) every year starting 2009 per this SB Nation article.
Alex Rodriguez was suspended for the entire 2014 season. Spotrac shows that he forfeited $25 million of salary during the suspension.
Loss: $1 Million and more than $20,000 per month, Fathered Two Children With A Mistress. Miguel Cabrera’s mistress had two children. In 2019, a judge ruled that Miguel Cabrera must pay off his mistress’ million-dollar home, and pay her $20,000 per month child care. That’s in addition to paying for health care, private tuition, day care, extra-curricular activities, vacations and $5-million life insurance policies for the two children. The costs could have been higher for two reasons (she had asked for $100,000 per month child care, and his wife filed divorce papers but changed her mind).
Loss: Many Jobs Unattainable, Lack of College Degree. When their career is over, many baseball players seek a job. Looking at professional athletes, baseball players have the lowest percentage of college degrees (estimated at 4.3% in June of 2023). There are structural reasons, such as being recruited at high school graduation. On the other hand, the frequent travel by baseball players offers opportunity to study and take on-line classes.
There is a positive side: a college degree may not be required to obtain a sports related job. In retirement, for players who still worked, a study showed that a sports related job was a factor that influenced life satisfaction.
“For the permanently retired respondents, the most important factors were health, present income, and pre-retirement attitude. For those still working and retired from baseball for more than 20 years, pre-retirement attitude, health, having a job connected with sports, and present income had the most influence on life satisfaction.” — SABR
Summary.
There are many ways that baseball players can suffer financial loss. Six of them are misplaced trust, ignoring rules, too many eggs in one basket, performance enhancing drugs, fathering children with a mistress, and lack of a college degree.
Although Ohtani lost about 32% of his current net worth, his future income will make that loss relatively small.
Pete Rose’s egregious losses went beyond financial.
Curt Schilling’s current net worth is less than one percent of his lifetime earnings.
