The Economics Behind the Mets’ Near-Billion-Dollar Bet

The New York Mets struck a record $765 million deal for outfielder and star hitter Juan Soto to play with the team for 15 years.

The Big Swing: Soto’s deal is the most expensive contract ever in pro sports, inching deals closer to the billion-dollar benchmark. But the sheer length of the deal, coupled with the Dodgers’ $700 million ten-year contract with Shohei Ohtani, also points to how some organizations are looking to build their future around star players.

Between the Lines: Is Soto’s deal an insane overpayment or a wise investment? Mets owner Steven Cohen argues the latter.

• Soto, who’s just 26 years old, will be making roughly $51 million a year during his tenure for the Mets (and, let’s be honest, it’ll be his entire pro baseball career).
• That’s a lot of cash for Cohen, who’s already in the red for four years of high-dollar contracts to build a winning team, per Axios.
• But Soto, like Ohtani, is one of those once-in-a-generation players (twice? thrice?) who have unbelievable talent, a fervent fanbase, and, for lack of a better word, star power. In other words, they’re entertaining to watch.
• The Cohen equation is that Soto will lead the Mets to consistent glory — a World Series appearance nets teams an average of $50 million in revenue on top of an increase to an organization’s overall valuation.

Final Bat: The Mets brought in close to $400 million last year from a mix of ticket sales, parking, concessions, and advertising. Even if Soto’s long-term presence boosts that to $500 or $600 million, paying $51 million a year on one player is a massive percentage. That’s why some analysts are looking at Soto’s value beyond the Mets. Cohen is in the midst of pitching an $8 billion casino project next to the Mets’ Citi Field stadium. Soto’s celebrity may be a key driver in turning that into a moneymaker right off the bat (sorry, we had to).