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The Los Angeles Angels of Anaheim announced Saturday afternoon that the club has agreed to a one-year, $30 million contract with reigning American League MVP Shohei Ohtani for the 2023 season.

Ohtani was approaching his final year of arbitration, but with the both parties agreeing to the pay raise for Ohtani, the arbitration process will be avoided.

Ohtani, 28, is set to hit free agency after the 2023 season and upon reaching an agreement for 2023, that will not change.

Ohtani's contract is the highest pay raise in Major League Baseball history. Los Angeles Dodgers outfielder Mookie Betts had the previous record contract for an arbitration-eligible player at $27 million in 2020, after joining the club via trade from the Boston Red Sox.

Given Ohtani's new contract, it does not appear that the Angels will try to trade the dual-threat this offseason. A trade seems very unlikely, as it would seem the Angels would try to reach a long-term extension with the designated hitter and right-handed pitcher. Ohtani, given his prowess as a hitter and a pitcher, could receive the largest free agent contract in baseball history next winter.

Ohtani is putting together a very strong case to repeat as the AL's MVP. He's batting for a higher batting average this season (.276), than he did in 2021 (.257) when he won the award. In 643 plate appearances, Ohtani is slashing .276/.359/.888 with 34 home runs, 94 RBI and eleven stolen bases this season.

Ohtani has pitched 30.2 more innings than he did in 2021, and has a lower ERA and WHIP and a higher ERA+. Over 27 starts, Ohtani has a 2.35 ERA, 1.03 WHIP and 170 ERA+ in 161 innings.