March 19, 2024 • 15 mins
Major League Baseball has a big problem: it’s tapped out on new fans in the US. So it's looking abroad to Asia to bring in new ones. Japanese baseball prodigy Shohei Ohtani is crucial to that plan.
On today’s Big Take podcast, Bloomberg’s Janet Paskin discusses Ohtani’s meteoric rise, his $700 million contract with the Los Angeles Dodgers, and his pivotal role in the league’s global ambitions.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:03):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:08):
Hey Sarah here. One of the best parts of working
at Bloomberg is we have teams all around the world
working to bring you coverage with a truly global perspective.
Today's Big Take is an example of that. It's an
episode from our team in Hong Kong, hosted by my
colleague Tanya Chen. It's about a globe trotting baseball superstar,
an eye popping contract, and a bid to secure a
(00:30):
bright future for America's favorite pastime by taking it to Asia.
Here's Tanya.
Speaker 1 (00:36):
This Wednesday, the Los Angeles Dodgers and the San Diego
Padres will face off in the first ever Major League
Baseball game in South Korea. When tickets for the game
went on sale in January, they reportedly sold out in
just eight minutes.
Speaker 3 (00:54):
This is a huge deal in Asia and in Korea.
Speaker 1 (00:59):
That's my colleague Janet Paskin, a senior editor here at Bloomberg.
She says there are a few reasons those tickets disappeared
so fast.
Speaker 3 (01:07):
It features two really exciting teams. They each have notable
Asian stars on their rosters, and of course everyone's here
to see show. Heyo Tani.
Speaker 1 (01:19):
Just listen to how excited the MLB is to feature.
Speaker 3 (01:22):
Him clapping for show Hey who goes to the opposite field?
Show Hey Otani puts on the show the Bronx.
Speaker 1 (01:29):
You Bet, Showtime, Me and Arlington Tonight. It never stops amazing.
Speaker 3 (01:36):
First show Heyo Tani is the biggest star in baseball
right now. This will be show his first game for
the Dodgers since they signed him to a seven hundred
million dollar contract.
Speaker 1 (01:50):
It was the biggest sports contract in history, and for
a good reason. Otani is nothing short of a baseball superstar,
and his meteoric rise is central to Major League Baseball's future.
Speaker 3 (02:04):
Sho Hey Otani is an incredible gift to Major League Baseball,
not only because he is a generational player, but because
he plays directly into the league's desire to grow its
audience in Asia.
Speaker 1 (02:24):
So can Otani help the league knock it out of
the park and make baseball into Asia's favorite pastime? Today
on the show, a once in a generation baseball talent
meets the MLB's ambitions in Asia. This is the big
take from Bloomberg News. I'm Tanya Chen. Ask any sports
(02:49):
league and they'll tell you their fans are getting old.
Young people don't watch games as much as they used
to at home or in stadiums. For Major League Baseball
in the US, that's a big problem.
Speaker 3 (03:04):
It is hard to find anybody in the United States
right now who's going to be a new fan of baseball.
They've sort of tapped out the domestic market. There's not
a lot of room for growth there, so it overseas
that they're looking to cultivate new fans to create new audiences.
Speaker 1 (03:20):
A few years ago, Major League Baseball started to look
for new markets to break into, and Asia was a
natural choice. Baseball is one of the most popular sports
in both South Korea and Japan. Major League Baseball has
put on games in Tokyo before, but this time its
return to Asia is different. All eyes will be on
(03:41):
one of the biggest stars baseball has ever seen, twenty
nine year old Shoeo Tani.
Speaker 3 (03:47):
What we are seeing with shoe Heotani right now is
something that has not been seen in baseball, probably since
Babe Ruth. Because he is a dominant pitcher and he
has a dominant hit. That's what's called a two way player.
Speaker 1 (04:02):
Being a two way player means you're excellent at both
offense and defense. It is extremely difficult.
Speaker 3 (04:09):
And the reason for that is because pitchers put an
incredible amount of effort into planning out their games. It's
a lot of preparation, it is a ton of work.
And then hitters also put a ton of preparation into
facing the pictures that they're going to face. So between
(04:30):
the physical demands, the mental demands, and the demands of preparation,
he's basically working two full time jobs at the highest level.
Speaker 1 (04:41):
On top of that, baseball teams don't expect or even
allow their players to do both. This is the main
reason that Otani joined the American League fairly late in
twenty thirteen. Otani was a dominant high school player in
his home country of Japan, and he was interested in
joining ME League Baseball right out of high school, but
(05:02):
eventually he chose to stay.
Speaker 3 (05:05):
Because the team that he wanted to play for straight
out of high school was not interested in allowing him
to pitch and to hit, and the team that drafted
him in Japan, the nippenham Fighters, they were willing to
let him do both.
Speaker 1 (05:17):
After playing in Japan for five years, Otani joined the
Los Angeles Angels in twenty eighteen, and his career only
shot up from there, straight up to baseball super stardom.
Speaker 3 (05:30):
He wins the American League Rookie of the Year award
that year. The next couple of years are rocky, and
then he explodes. In twenty twenty one, he is the
first player in the history of baseball to hit more
than ten home runs, steal more than twenty bases as
a hitter, and strike out more than one hundred in.
Speaker 1 (05:49):
The same season.
Speaker 3 (05:50):
So he gets to the AL MVP that year. The
next year he's on the leader boards for hitting and pitching,
and then the year after that he's the MVP again.
Speaker 1 (06:00):
To put it lightly, Otani was on fire. One of
the biggest highlights during that time was the finals at
the twenty twenty three World Baseball Classic.
Speaker 3 (06:12):
So this is like a World Cup of Baseball. It's
Japan versus the US.
Speaker 2 (06:16):
Show.
Speaker 3 (06:16):
Heyo Tani's playing for Japan, his Angels teammate Mike Trout,
also a phenomenal baseball player, is playing for the US.
Speaker 1 (06:25):
Here's MLB's live commentary on the game. Just listen to
the announcer's excitement.
Speaker 3 (06:30):
The dream matt show, Otani, Trout so it's three to two,
two outs, Shoho Tani gets one more out and Japan
wins the World Baseball Classic. Otani's ready, Trout's ready, and
sho Heo Tani gets Trout to swing at a slider
(06:53):
to strike him out.
Speaker 1 (06:54):
Hey strokes him out. Otani strikes out Trout and squat
on top of the baseball world.
Speaker 3 (07:03):
And everybody goes insane. Right, It's exactly what you want
as a sports fan in those crucial moments. You want
to see the best players face off, and that's what
they got.
Speaker 1 (07:21):
The game was monumental, and not too long after that match,
Otani shocked the baseball world again by signing a ten year,
seven hundred million dollar contract with the LA Dodgers. It
is the biggest player contract in sports history, and I
mean all of sports, Bigger than football quarterback Patrick Mahomes,
(07:43):
bigger than soccer star Lionel Messi, and it's structured in
this really unique way.
Speaker 3 (07:48):
You might think seven hundred million dollars, ten years, seventy
million dollars a year. No, he's getting two million dollars
a year for the first ten years and then when
the contract expires. At that point, though, he starts to
collect sixty eight million dollars a year for the subsequent
ten years.
Speaker 1 (08:05):
It's a lot of money, but Otani's value spans far
beyond the field, and that's exactly what MLB needs right now.
Speaker 3 (08:14):
His fame and his talent and this incredible feat that
he is accomplishing on the field. They want to leverage
that into new enthusiasm for fans in the United States
and all over the world.
Speaker 1 (08:33):
Major League Baseball has a bigger plan. Can Otani help
them achieve that. Last December, the La Dodgers signed a
record seven hundred million dollar deal with baseball star shohe Otani.
(08:54):
My colleague Janet says the deal was a historic bet
on Otani's talent, but also on his to inspire that
kind of deep fandom that brings a new and younger fans.
Speaker 3 (09:05):
You know, my son plays baseball, he and his friends.
We're taping this in Hong Kong, so a lot of
the kids who play baseball here are Asian. The affection
in the identification that they feel with Shoheo Tani is
really strong.
Speaker 1 (09:18):
The games in Soul this Wednesday will solidify the league's
presence in Asia and the lineup Dodgers versus the Padres
aren't random picks either, coming from California. Both teams have
a high portion of Asian fans in the US and
a huge fan base in Asia as well.
Speaker 3 (09:36):
Major League Baseball plans out it's international games years in advance,
and this particular matchup in Seoul was set before the
Dodgers signed Shoho Tani, before the Dodgers signed Yoshinobu Yamamoto,
a phenomenal Japanese pitcher that everybody expects great things from.
So now this matchup that they established several years ago,
(10:00):
you will have two teams coming into Korea with six
Asian players between them, including two of the biggest offseason signings.
Speaker 1 (10:10):
Janet says that having Otani and other Asian players in
the league is more than a push forward for representation
in the sport, plain and simple. It's a business move.
Speaker 3 (10:20):
I mean, the uber example of this is Yao Ming, obviously,
the basketball player who was from China, and I don't
even need to say who he is, right but he
almost single handedly made NBA basketball into the most popular
sport in China. And beyond that, I think a big
thing that sports sells to its fans is a sense
(10:42):
of drama and character and narrative, and when fans can
attach themselves to stars and players and personalities, they are
more invested in the narrative. They feel a stronger sense
of identification.
Speaker 1 (10:59):
Even back in the States, where there's little room to
grow more baseball fans, having Asian players on the team helped.
Speaker 2 (11:06):
So.
Speaker 3 (11:07):
Major League Baseball says that in the last couple of
years its Asian American fan base is up about eighteen percent,
and that was driven by a handful of teams who
had Asian players, including the Angels and the Padres.
Speaker 1 (11:24):
And all of that means more business opportunities. These days,
sports teams make most of their money in three ways,
media rights, ticket sales, and licensing among them. Media rights
is the lion's share, and MLB could really work on that.
One way to look at this is to compare it
with one of the world's most successful sports leagues, the
(11:46):
English Premier League.
Speaker 3 (11:48):
So for the Premier League at this point, the money
that they earn from international media rights is greater than
the money that they earn from domestic media rights. It's
around fifty to fifty, but with a little bit more
coming globally, that's huge. You know, there's no single global
league that it's worth more to the premier league than
(12:11):
the UK, But taken together, the global audience is more
valuable than the domestic audience, at least in terms of
media rights.
Speaker 1 (12:20):
Now, taking that as a benchmark, it's estimated that Major
League Baseball gets only about ten percent of its media
rights revenue overseas, way behind the premier league's share. So
that's the number that they're trying to move. And going
global could also bring in more sponsorship deals for MLB teams, and.
Speaker 3 (12:39):
The Dodgers or the Padres can charge more for that
because now they're saying, oh, and we're delivering to you
this audience overseas.
Speaker 1 (12:47):
But these potential revenue streams won't come without challenges. To start,
there's the time zone difference.
Speaker 3 (12:53):
So that's a real headwind when games are played in
the United States, and what that translates to you in
Korea or in Japan, you're looking at games that are
in the middle of the night at seven am, you know,
on a weekday. So the natural kind of sports viewing
or sports as live event that Americans are used to
(13:16):
and that American leagues and brands really rely on that
doesn't exist in quite the same ways.
Speaker 1 (13:23):
Also, there just aren't enough games played in Asia.
Speaker 3 (13:26):
If you live in Japan or you live in Korea
and you're super lucky, maybe you'll go to like a
couple games a year. There's no casual like, oh, I
don't have plans on Saturday. Let's see what the tickets
to baseball cost.
Speaker 1 (13:42):
The Dodgers predict they'll generate as much as one hundred
million dollars a year in new revenue thanks to Otani.
And that's why the Soul games this week are so important.
Speaker 3 (13:53):
That's partly why they're playing these games in Seoul. It
is a way to engage with fans, try to really
solidify some of those relationships, because the other thing Major
League Baseball can't do is they can't play games once
the season really gets underway again because of the time
change and the schedule's so packed. So it's really this
season opening moment where they can have these games in
(14:17):
Asia in particular.
Speaker 1 (14:27):
This is a big take from Bloomberg News. I'm Tanya Chen.
This episode was produced by Young Young and Naomi, with
additional reporting from Jenny Sunman Lee and so He Kim.
It was edited by Aaron Edwards and mixed by Young
Young and Alex Sugula. Our senior producers are Naomi Shaven
and Elizabeth Ponzo. Nicole Beemster Bauer is our executive producer,
(14:50):
and Stage Bauman is Bloomberg's head of podcasts. Thanks for
listening to the Big Take. We'll be back tomorrow.
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:08):
Hey Sarah here. One of the best parts of working
at Bloomberg is we have teams all around the world
working to bring you coverage with a truly global perspective.
Today's Big Take is an example of that. It's an
episode from our team in Hong Kong, hosted by my
colleague Tanya Chen. It's about a globe trotting baseball superstar,
an eye popping contract, and a bid to secure a
(00:30):
bright future for America's favorite pastime by taking it to Asia.
Here's Tanya.
Speaker 1 (00:36):
This Wednesday, the Los Angeles Dodgers and the San Diego
Padres will face off in the first ever Major League
Baseball game in South Korea. When tickets for the game
went on sale in January, they reportedly sold out in
just eight minutes.
Speaker 3 (00:54):
This is a huge deal in Asia and in Korea.
Speaker 1 (00:59):
That's my colleague Janet Paskin, a senior editor here at Bloomberg.
She says there are a few reasons those tickets disappeared
so fast.
Speaker 3 (01:07):
It features two really exciting teams. They each have notable
Asian stars on their rosters, and of course everyone's here
to see show. Heyo Tani.
Speaker 1 (01:19):
Just listen to how excited the MLB is to feature.
Speaker 3 (01:22):
Him clapping for show Hey who goes to the opposite field?
Show Hey Otani puts on the show the Bronx.
Speaker 1 (01:29):
You Bet, Showtime, Me and Arlington Tonight. It never stops amazing.
Speaker 3 (01:36):
First show Heyo Tani is the biggest star in baseball
right now. This will be show his first game for
the Dodgers since they signed him to a seven hundred
million dollar contract.
Speaker 1 (01:50):
It was the biggest sports contract in history, and for
a good reason. Otani is nothing short of a baseball superstar,
and his meteoric rise is central to Major League Baseball's future.
Speaker 3 (02:04):
Sho Hey Otani is an incredible gift to Major League Baseball,
not only because he is a generational player, but because
he plays directly into the league's desire to grow its
audience in Asia.
Speaker 1 (02:24):
So can Otani help the league knock it out of
the park and make baseball into Asia's favorite pastime? Today
on the show, a once in a generation baseball talent
meets the MLB's ambitions in Asia. This is the big
take from Bloomberg News. I'm Tanya Chen. Ask any sports
(02:49):
league and they'll tell you their fans are getting old.
Young people don't watch games as much as they used
to at home or in stadiums. For Major League Baseball
in the US, that's a big problem.
Speaker 3 (03:04):
It is hard to find anybody in the United States
right now who's going to be a new fan of baseball.
They've sort of tapped out the domestic market. There's not
a lot of room for growth there, so it overseas
that they're looking to cultivate new fans to create new audiences.
Speaker 1 (03:20):
A few years ago, Major League Baseball started to look
for new markets to break into, and Asia was a
natural choice. Baseball is one of the most popular sports
in both South Korea and Japan. Major League Baseball has
put on games in Tokyo before, but this time its
return to Asia is different. All eyes will be on
(03:41):
one of the biggest stars baseball has ever seen, twenty
nine year old Shoeo Tani.
Speaker 3 (03:47):
What we are seeing with shoe Heotani right now is
something that has not been seen in baseball, probably since
Babe Ruth. Because he is a dominant pitcher and he
has a dominant hit. That's what's called a two way player.
Speaker 1 (04:02):
Being a two way player means you're excellent at both
offense and defense. It is extremely difficult.
Speaker 3 (04:09):
And the reason for that is because pitchers put an
incredible amount of effort into planning out their games. It's
a lot of preparation, it is a ton of work.
And then hitters also put a ton of preparation into
facing the pictures that they're going to face. So between
(04:30):
the physical demands, the mental demands, and the demands of preparation,
he's basically working two full time jobs at the highest level.
Speaker 1 (04:41):
On top of that, baseball teams don't expect or even
allow their players to do both. This is the main
reason that Otani joined the American League fairly late in
twenty thirteen. Otani was a dominant high school player in
his home country of Japan, and he was interested in
joining ME League Baseball right out of high school, but
(05:02):
eventually he chose to stay.
Speaker 3 (05:05):
Because the team that he wanted to play for straight
out of high school was not interested in allowing him
to pitch and to hit, and the team that drafted
him in Japan, the nippenham Fighters, they were willing to
let him do both.
Speaker 1 (05:17):
After playing in Japan for five years, Otani joined the
Los Angeles Angels in twenty eighteen, and his career only
shot up from there, straight up to baseball super stardom.
Speaker 3 (05:30):
He wins the American League Rookie of the Year award
that year. The next couple of years are rocky, and
then he explodes. In twenty twenty one, he is the
first player in the history of baseball to hit more
than ten home runs, steal more than twenty bases as
a hitter, and strike out more than one hundred in.
Speaker 1 (05:49):
The same season.
Speaker 3 (05:50):
So he gets to the AL MVP that year. The
next year he's on the leader boards for hitting and pitching,
and then the year after that he's the MVP again.
Speaker 1 (06:00):
To put it lightly, Otani was on fire. One of
the biggest highlights during that time was the finals at
the twenty twenty three World Baseball Classic.
Speaker 3 (06:12):
So this is like a World Cup of Baseball. It's
Japan versus the US.
Speaker 2 (06:16):
Show.
Speaker 3 (06:16):
Heyo Tani's playing for Japan, his Angels teammate Mike Trout,
also a phenomenal baseball player, is playing for the US.
Speaker 1 (06:25):
Here's MLB's live commentary on the game. Just listen to
the announcer's excitement.
Speaker 3 (06:30):
The dream matt show, Otani, Trout so it's three to two,
two outs, Shoho Tani gets one more out and Japan
wins the World Baseball Classic. Otani's ready, Trout's ready, and
sho Heo Tani gets Trout to swing at a slider
(06:53):
to strike him out.
Speaker 1 (06:54):
Hey strokes him out. Otani strikes out Trout and squat
on top of the baseball world.
Speaker 3 (07:03):
And everybody goes insane. Right, It's exactly what you want
as a sports fan in those crucial moments. You want
to see the best players face off, and that's what
they got.
Speaker 1 (07:21):
The game was monumental, and not too long after that match,
Otani shocked the baseball world again by signing a ten year,
seven hundred million dollar contract with the LA Dodgers. It
is the biggest player contract in sports history, and I
mean all of sports, Bigger than football quarterback Patrick Mahomes,
(07:43):
bigger than soccer star Lionel Messi, and it's structured in
this really unique way.
Speaker 3 (07:48):
You might think seven hundred million dollars, ten years, seventy
million dollars a year. No, he's getting two million dollars
a year for the first ten years and then when
the contract expires. At that point, though, he starts to
collect sixty eight million dollars a year for the subsequent
ten years.
Speaker 1 (08:05):
It's a lot of money, but Otani's value spans far
beyond the field, and that's exactly what MLB needs right now.
Speaker 3 (08:14):
His fame and his talent and this incredible feat that
he is accomplishing on the field. They want to leverage
that into new enthusiasm for fans in the United States
and all over the world.
Speaker 1 (08:33):
Major League Baseball has a bigger plan. Can Otani help
them achieve that. Last December, the La Dodgers signed a
record seven hundred million dollar deal with baseball star shohe Otani.
(08:54):
My colleague Janet says the deal was a historic bet
on Otani's talent, but also on his to inspire that
kind of deep fandom that brings a new and younger fans.
Speaker 3 (09:05):
You know, my son plays baseball, he and his friends.
We're taping this in Hong Kong, so a lot of
the kids who play baseball here are Asian. The affection
in the identification that they feel with Shoheo Tani is
really strong.
Speaker 1 (09:18):
The games in Soul this Wednesday will solidify the league's
presence in Asia and the lineup Dodgers versus the Padres
aren't random picks either, coming from California. Both teams have
a high portion of Asian fans in the US and
a huge fan base in Asia as well.
Speaker 3 (09:36):
Major League Baseball plans out it's international games years in advance,
and this particular matchup in Seoul was set before the
Dodgers signed Shoho Tani, before the Dodgers signed Yoshinobu Yamamoto,
a phenomenal Japanese pitcher that everybody expects great things from.
So now this matchup that they established several years ago,
(10:00):
you will have two teams coming into Korea with six
Asian players between them, including two of the biggest offseason signings.
Speaker 1 (10:10):
Janet says that having Otani and other Asian players in
the league is more than a push forward for representation
in the sport, plain and simple. It's a business move.
Speaker 3 (10:20):
I mean, the uber example of this is Yao Ming, obviously,
the basketball player who was from China, and I don't
even need to say who he is, right but he
almost single handedly made NBA basketball into the most popular
sport in China. And beyond that, I think a big
thing that sports sells to its fans is a sense
(10:42):
of drama and character and narrative, and when fans can
attach themselves to stars and players and personalities, they are
more invested in the narrative. They feel a stronger sense
of identification.
Speaker 1 (10:59):
Even back in the States, where there's little room to
grow more baseball fans, having Asian players on the team helped.
Speaker 2 (11:06):
So.
Speaker 3 (11:07):
Major League Baseball says that in the last couple of
years its Asian American fan base is up about eighteen percent,
and that was driven by a handful of teams who
had Asian players, including the Angels and the Padres.
Speaker 1 (11:24):
And all of that means more business opportunities. These days,
sports teams make most of their money in three ways,
media rights, ticket sales, and licensing among them. Media rights
is the lion's share, and MLB could really work on that.
One way to look at this is to compare it
with one of the world's most successful sports leagues, the
(11:46):
English Premier League.
Speaker 3 (11:48):
So for the Premier League at this point, the money
that they earn from international media rights is greater than
the money that they earn from domestic media rights. It's
around fifty to fifty, but with a little bit more
coming globally, that's huge. You know, there's no single global
league that it's worth more to the premier league than
(12:11):
the UK, But taken together, the global audience is more
valuable than the domestic audience, at least in terms of
media rights.
Speaker 1 (12:20):
Now, taking that as a benchmark, it's estimated that Major
League Baseball gets only about ten percent of its media
rights revenue overseas, way behind the premier league's share. So
that's the number that they're trying to move. And going
global could also bring in more sponsorship deals for MLB teams, and.
Speaker 3 (12:39):
The Dodgers or the Padres can charge more for that
because now they're saying, oh, and we're delivering to you
this audience overseas.
Speaker 1 (12:47):
But these potential revenue streams won't come without challenges. To start,
there's the time zone difference.
Speaker 3 (12:53):
So that's a real headwind when games are played in
the United States, and what that translates to you in
Korea or in Japan, you're looking at games that are
in the middle of the night at seven am, you know,
on a weekday. So the natural kind of sports viewing
or sports as live event that Americans are used to
(13:16):
and that American leagues and brands really rely on that
doesn't exist in quite the same ways.
Speaker 1 (13:23):
Also, there just aren't enough games played in Asia.
Speaker 3 (13:26):
If you live in Japan or you live in Korea
and you're super lucky, maybe you'll go to like a
couple games a year. There's no casual like, oh, I
don't have plans on Saturday. Let's see what the tickets
to baseball cost.
Speaker 1 (13:42):
The Dodgers predict they'll generate as much as one hundred
million dollars a year in new revenue thanks to Otani.
And that's why the Soul games this week are so important.
Speaker 3 (13:53):
That's partly why they're playing these games in Seoul. It
is a way to engage with fans, try to really
solidify some of those relationships, because the other thing Major
League Baseball can't do is they can't play games once
the season really gets underway again because of the time
change and the schedule's so packed. So it's really this
season opening moment where they can have these games in
(14:17):
Asia in particular.
Speaker 1 (14:27):
This is a big take from Bloomberg News. I'm Tanya Chen.
This episode was produced by Young Young and Naomi, with
additional reporting from Jenny Sunman Lee and so He Kim.
It was edited by Aaron Edwards and mixed by Young
Young and Alex Sugula. Our senior producers are Naomi Shaven
and Elizabeth Ponzo. Nicole Beemster Bauer is our executive producer,
(14:50):
and Stage Bauman is Bloomberg's head of podcasts. Thanks for
listening to the Big Take. We'll be back tomorrow.
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Sarah Holder
Saleha Mohsin
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