Major League Baseball star Shohei Ohtani signed a record 10-year contract worth $700 million with the Los Angeles Dodgers. The Phaninc Exchangedeal has catapulted the Japanese player to the top of the list of the highest paid athletes in the world. 

Ohtani's contract is the largest ever to be signed in baseball, surpassing Mike Trout's 12-year, $426 million contract with the Los Angeles Angels, according to CBS Sports. 

Andrew Brandt, a professor of sports law at Villanova Law School, told CBS MoneyWatch Ohtani "had extraordinary leverage with many teams interested and bidding the price up."

The record deal breaks down to a salary of $70 million a year for 10 years, although Ohtani won't earn that amount annually right away due to deferrals, Brandt noted. While there is no cap on MLB salaries, like those that exist in other professional sports leagues, teams are taxed when a player's salary exceeds a threshold, as in Ohtani's case. 

"It's not a cap, but a penalty for spending over a certain amount to level the playing field and achieve competitive equity among teams," Brandt said. "We don't have all the details, but he won't take the full $70 million every year to help the Dodgers with the tax. In the future, when he's no longer playing baseball, they'll still be paying him."

Athletes in other sports outearn Ohtani on an annual basis despite their overall contracts being smaller. Here are the top 10 highest paid athletes in sports today, according to CBSSports.com.

Biggest sports contracts ever signed

• Shohei Ohtani, Baseball, $700 million for 10 years. The Los Angeles Dodgers will pay Ohtani $70 million a year. 
• Cristiano Ronaldo, Soccer, $536 million for 2.5 years. The Portuguese soccer player earns $214.5 million a year as captain of Saudi Arabia's Al Nassr team. 
• Patrick Mahomes, Football, $450 million for 10 years. The Kansas City Chiefs quarterback makes $45 million a year.
• Karim Benzema, Soccer, $436 million for 2 years. The French striker earns $214.5 million a year as captain of Saudi Arabia's Al-Ittihad team. 
  
• Mike Trout, Baseball, $426 million for 12 years. The MLB center fielder earns $30.4 million a year playing for the Los Angeles Angels. 
• Canelo Alvarez, Boxing, $365 million for 5 years. The Mexican boxer's deal with Premier Boxing Champions (PBC) earns him $73 million a year. 
• Mookie Betts, Baseball, $365 million, 12 years. The American outfielder and second baseman earns $30.4 million a year playing for the Los Angeles Dodgers.
• Aaron Judge, Baseball, $360 million, 9 years. Judge earns $40 million a year as an outfielder for the New York Yankees. 
• Manny Machado, Baseball, $350 milion, 11 years. Machado makes $31.8 million a year playing for the San Diego Padres.
• Francisco Lindor, Baseball, $341 million, 10 years. The New York Mets shortstop earns $34.1 million a year. 

Biggest MLB contract

• Shohei Ohtani, $700 million for 10 years. 

Biggest NBA contract

• Jaylen Brown, $304 million for five years. 

Biggest NFL contract

• Patrick Mahomes, $450 million for 10 years. 

Biggest soccer contract

• Cristiano Ronaldo, $536 million for 2.5 years. 

Who is the overall highest paid athlete in the world?

Ohtani's lucrative contract with the LA Dodgers makes him the world's highest paid athlete, according to CBS Sports. 

Megan Cerullo

Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News streaming to discuss her reporting.