Insanity is the right word. Babe Ruth was once asked if he knew his salary was now greater than the President's, and his answer was, "well, I had a better year." I think the President was Hoover, so he was probably right.
In the series on Baseball, someone commented that before the Reserve Clause was eliminated by Curt Flood's refusal to abide by it, players made roughly 7 times as much as the average fan at the ballpark. Afterward, it was 7 x 7 as much.
Assuming half a billion and 10 years of useful pitching/hitting, That's $50M/year. Forget the average fan because Ohtani isn't the average player. $50M just might be the average profit margin for a MLB franchise.