Dodgers have accumulated over $1 billion in deferred payments through 2046

Dodgers have accumulated over $1 billion in deferred payments through 2046

The reigning-champion Los Angeles Dodgers had a very busy offseason.

One offseason removed from adding Shohei Ohtani to a 10-year, $700 million contract, they added Blake Snell, Tanner Scott, Hyesong Kim, Kirby Yates, Michael Conforto and Roki Sasaki while re-signing Teoscar Hernandez, Blake Treinan and Enrique Hernandez. They eclipsed $500 million in total contracts signed this season, second to only the New York Mets ($1.03 billion) after they added Juan Soto for a record $765 million, according to Spotrac.

Though the Dodgers’ unique approach has been signing these free agents with deferred money. According to the Associated Press, the Dodgers have eclipsed $1 billion in deferred money through the 2046 season. Here’s how it’s laid out:

• Ohtani: $680 million deferred from 2034-43
• Hernandez: $32 million from 2030-39
• Mookie Betts: $115 million from 2033-44
• Snell: $66 million from 2035-46
• Freddie Freeman: $57 million from 2028-40
• Scott: $21 million from 2030-39
• Will Smith: $50 million from 2034-43
• Tommy Edman: $25 million from 2037-44

“Deferrals at some point can become problematic,” MLB commissioner Rob Manfred said, according to The Athletic’s Evan Drellich, in December. “Historically, we did have one franchise, Arizona, that got itself into financial difficulties as a result of excessive deferrals. We’ve strengthened our rules in terms of the funding of deferred compensation in order to avoid that kind of problem. But, you know, look, obviously the bigger the numbers get, the bigger the concern.”

MLB’s current collective bargaining agreement ends in December of 2026. The issue of deferred contracts will almost certainly be a hot topic because it’s never this pertinent–especially with one particular franchise. Could that force another lockout?

According to the current CBA, there is “no limitations on either the amount of deferred compensation or the percentage of total compensation attributable to deferred
compensation for which a Uniform Player’s Contract may provide.” They must fully be paid on or before the second July 1 of the following championship season.

Yankees owner Hal Steinbrenner admits it’s ‘difficult’ to compete with Dodgers’ spending

By doing this, the Dodgers lower their payroll for the 2025 season and beyond–depending on how the contracts are structured minus the deferred money–allowing them more flexibility to sign free agents. The majority of the aforementioned free agents signed for close to market value, even though other billionaire owners believe it’s a problem to compete with this type of spending.

Winning has a price. You know what they say: Build it and they will come. Build a winning team by spending money and fans plus revenue will come–no matter how big the market is. Few have caught on to that, however.

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