Dodgers deferred contracts, explained: How do LA's nearly $1 billion future payments work with MLB rules?

The Dodgers are astatine it again.

One twelvemonth aft they deferred much than 97% of superstar Shohei Ohtani's mega contract, and included deferrals successful Will Smith's 10-year hold arsenic well, the Dodgers added two-time Cy Young Award victor Blake Snell with the assistance of much deferrals.

Snell's deferrals aren't astir arsenic important arsenic those successful Ohtani's deal. Los Angeles is deferring $62 cardinal of his five-year, $182 cardinal deal, capable to trim the contract's interaction against the luxury taxation threshold. With the agreement, though, the Dodgers are present connected the hook for adjacent much wealth down the enactment arsenic they proceed to pursuit championships.

Here's a look astatine the Dodgers' deferred contracts and however they align with MLB rules.

MORE: How Blake Snell impacts Dodgers' 2025 payroll

Dodgers deferred contracts, explained

After Tommy Edman's extension, the Dodgers beryllium $989 cardinal successful deferred wealth connected their existent contracts.

Five contracts connected the Dodgers' payroll see deferred money, and much than 30% of each woody is deferred. Ohtani's woody is unique, however. All but $20 cardinal of his $700 cardinal mega declaration is deferred, meaning he's making $2 cardinal per twelvemonth and volition marque $68 cardinal without involvement successful each of the 10 years aft the woody expires.

Ohtani's woody inactive counts for much than $45 cardinal against the luxury taxation threshold, but deferrals let the deed to beryllium overmuch little than the contract's $70 cardinal yearly value. Smith, Snell, Freddie Freeman and Mookie Betts are besides connected deferred deals, though little than fractional of each woody is deferred. 

Deferrals aren't each that brings down Snell's declaration worth against the luxury tax. His woody comes with a whopping $52 cardinal signing bonus, putting the Dodgers connected the hook for plentifulness of wealth immediately. Rather than counting for $36.4 cardinal against the taxation threshold, Snell's woody volition number for $32-33 million. 

Yoshinobu Yamamoto's 12-year, $325 cardinal declaration does not see deferrals, but a signing bonus likewise reduced its deed against the taxation threshold.

MORE: First look astatine Dodgers' starting rotation with Blake Snell

Are Dodgers deferred contracts against MLB rules?

MLB's corporate bargaining statement has nary limits connected deferred wealth successful contracts. There is nary headdress connected full deferrals oregon the percent of a woody that tin beryllium deferred, truthful the Dodgers aren't breaking immoderate MLB rules with the mode they've structured galore of their largest contracts. 

The rules let teams similar the Dodgers to simply footwear the tin down the roadworthy to support a squad unneurotic oregon adhd different pieces successful the short-term. While it mightiness consciousness similar Los Angeles has limitless money, the summation of Yamamoto mightiness not person been imaginable without Ohtani deferring truthful overmuch of his declaration a twelvemonth ago. In the end, it paid disconnected with a championship. 

The Dodgers volition beryllium connected the hook for plentifulness of wealth erstwhile these deals wrapper up — Freeman's declaration already has lone 3 years remaining — but their anticipation is salaries (and revenue) volition proceed to rise, and $68 cardinal successful 2040, for example, won't beryllium arsenic overmuch of a stroke arsenic it would beryllium today.

MLB deferred contracts list

The Dodgers are the kings of deferred contracts astatine the moment, but they didn't invent the concept. Here's a look astatine progressive contracts with deferrals.

Current deferred contracts

While his MLB vocation is finished owed to injuries, erstwhile Nationals ace Stephen Strasburg is inactive conscionable 5 years into the seven-year woody helium signed with Washington aft the 2019 season. That woody includes $80 cardinal successful deferred money, the astir of immoderate progressive non-Dodgers contract.

Rafael Devers, Nolan Arenado, Christian Yelich and J.T. Realmuto each person deferred wealth connected their existent deals, portion Mets proprietor Steve Cohen included deferrals successful deals signed by Francisco Lindor and Edwin Diaz.

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Expiring deferred contracts

Two contracts with deferred wealth precocious expired. Chris Sale is starting a caller woody with the Braves aft his five-year woody primitively signed with the Red Sox ended, portion erstwhile Nationals starter Patrick Corbin is present a escaped agent. Both expiring deals contained deferred money, though Corbin's was lone a fraction of the full value.

Historic deferred contracts

The full fig of deferred contracts successful MLB past isn't known, but here's a roundup of immoderate of the astir notable ever signed:

Bonilla has the astir celebrated deferred declaration successful MLB history, arsenic involvement payments of $1.19 cardinal volition beryllium paid to him by the Mets each July 1 until 2035, contempt the woody being signed successful 1991.

Hall of Fame person Bruce Sutter had a akin deal, however, arsenic involvement payments done 2022 allowed him to marque overmuch much than the $9.1 cardinal archetypal worth of his contract.

Max Scherzer, meanwhile, volition beryllium paid $15 cardinal annually by the Nationals done 2028, portion erstwhile Orioles slugger Chris Davis is connected the books successful Baltimore done 2037.

The Reds made their last outgo to Ken Griffey Jr. earlier successful 2024, portion the Red Sox volition wage Manny Ramirez done 2026 aft they agreed astatine the extremity of his tenure to dispersed retired the remaining wealth connected his deal.