Juan Soto: Who is he and why is he paid so much?

MLB teams secure revenue through a combination of ticket sales, broadcast deals, sponsorship and merchandise.

The teams have money to spend. According to Forbes, the average MLB team is now worth $2.4bn (£1.89bn)., external In 2024, the Yankees were valued at $7.55bn (£5.95bn).

The league also has no salary cap. That sets it apart from the other US professional leagues – the NFL, NBA and NHL – which limit the amount each team can spend on wages.

However, the MLB does operate what’s called a ‘competitive balance tax’, external, which means clubs who go over a payroll threshold are taxed on the amount above that. For 2024, that threshold was $237m ($187m).

With all this talk of multi-million-dollar contracts, you might expect baseball players to regularly pop up in Forbes’ list of highest-paid athletes. Yet of the 50 top-paid athletes, external, there are only two: Ohtani and Max Scherzer.

That is because the top-line value in baseball is driven by the length of contract. In Soto’s case, we know what he will earn over 15 years – but that doesn’t make it the highest annually.

For example, Portugal forward Cristiano Ronaldo is the highest-paid footballer in the world – earning an annual salary of £177m from Saudi Arabia’s Al Nassr.

That’s more than double the salary of Lionel Messi, who plays for MLS side Inter Miami. His deal is reportedly worth up to £47m a year.

Soto’s, meanwhile, is worth £40m a year.