Shohei Ohtani is poised to shatter MLB free-agency records this winter — but will it be a wise business decision to sign him?

As the Los Angeles Angels’ two-way phenom gets set to start Tuesday’s All-Star Game in Seattle — and is again the talk of the sport amid another historic season — a contract in excess of $500 million appears all but certain. 

That number would easily set league records for both total size and average annual value — but Ohtani could ultimately command $600 million.

“He’s going to get a lot of money, and he deserves it. There’s no other player like him,” said Atlanta Braves catcher Sean Murphy.

Ohtani drives a wide range of fan engagement and revenue metrics for the Angels and MLB. His jersey ranks second in MLBShop.com sales this season, and he has built an endorsement portfolio valued at an annual $35 million. But he’s getting tired of losing on an Angels team that hasn’t reached the postseason since 2014 and is continually beset with ownership and stadium issues.

Contract Caveats

Signing Ohtani to such a gigantic contract will almost certainly raise unprecedented questions about MLB payroll management. A deal would likely commit the signing club to a top-tier payroll for nearly a decade at a time when the link between player spending and on-field success is being inverted like never before — and MLB pitcher injuries remain problematic.

The Angels also could potentially trade Ohtani at the Aug. 1 deadline in order to gain a better return, instead of losing him in free agency.

As the influence of foreign money in U.S. sports continues to draw increased interest and controversy, the NBA will continue to restrict majority ownership of its basketball teams.

NBA commissioner Adam Silver said “there’s no contemplation right now” about allowing sovereign wealth funds take full control of franchises. Silver didn’t rule out the idea entirely, though: “I don’t want to say what could ever happen.”

The Qatar Investment Authority recently acquired a 5% stake for a reported $200 million in Monumental Sports & Entertainment — the owners of the Washington Wizards, the NHL’s Capitals, and the WNBA’s Mystics. 

The commissioner acknowledged skyrocketing team valuations make it difficult for a single individual to make a large investment in a team. 

“In part, the reason why we’ve opened up investment opportunities to private equity firms, sovereign wealth funds, is because we’re running out of individuals, frankly, who are in a position to write those kinds of checks,” he said.

Money Talks

Qatar’s MSE investment represented the first sovereign wealth fund to buy into an American sports league via those NBA, NHL, and WNBA teams. It wouldn’t be shocking to see another foreign entity follow suit with other teams in those leagues.

The next domino — a sovereign wealth fund buying a stake in an MLB or NFL team — has yet to fall.

An American firm — one of the biggest multi-club owners in soccer — is looking to raise a significant chunk of change to expand its global ambitions.

Miami-based private equity firm 777 Partners is setting its sights on raising $220 million to fund its soccer portfolio, according to Bloomberg.

Currently, 777 Partners owns or has stakes in:

• La Liga club Sevilla
• Italian club Genoa FC (currently in Serie B)
• Belgian club Standard de Liège
• French club Red Star FC
• Brazilian side CR Vasco da Gama
• Australian club Melbourne Victory FC

The firm has also previously explored investing in Premier League club Everton. The structure of the potential fundraising is still to be determined. 

The multi-club model is increasingly popular as the world’s savviest business people realize the opportunities available in professional sports.

City Football Group is perhaps the most prominent example, with EPL champions Manchester City leading a cohort of nearly a dozen clubs. Chelsea owner Todd Boehly is experimenting with the model via his company BlueCo, which purchased Ligue 1 club RC Strasbourg Alsace.

Eagle Football Holdings — led by former FuboTV executive chairman John Textor — owns four clubs including the EPL’s Crystal Palace and Ligue 1’s Olympique Lyonnais. RedBird Capital Partners controls AC Milan and French club Toulouse.