The Los Angeles Dodgers have been one of the most aggressive teams in recent years when it comes to improving their roster.
In the last three offseasons alone, the team signed Shohei Ohtani, Freddie Freeman, Blake Snell, Teoscar Hernández and Tanner Scott, among others, to lucrative contracts.
All of the aforementioned players had deferred salary included in their respective contracts. It’s a strategy the Dodgers have utilized to help lower their short-term cash obligations and save on the luxury tax.
“It’s just a lever. We’ve done deals recently that don’t have it, we’ve done deals that do,” Dodgers president of baseball operations Andrew Friedman said.
“In a negotiation, I think it’s always challenging. So you’re looking to any lever you possibly can to help get to a point where there is overlap. There are times when that deal that lines up in a more straightforward way and there’s times where it’s less straightforward.
“Including deferrals helps as a lever to find that overlap. It’s been a useful tool for us, but we have no hard and fast rule. We just like to get deals done.”
After their latest round of signings during this past offseason, the Dodgers now owe $1.051 billion in deferred salary to nine players in upcoming years.
Dodgers deferred salary owed
Shohei Ohtani: $680 million
The Dodgers signed Ohtani to a 10-year, $700 million contract in December 2023, which at the time was the largest deal ever given to a professional athlete.
However, Ohtani will earn only $20 million over the lifetime of his contract, with the remaining $680 million to be paid out from 2034-2043.
Mookie Betts: $115 million
The Dodgers signed Mookie Betts to a 12-year, $365 million contract extension on the eve of Opening Day in 2020, which included $115 million in deferred salary that will be paid out from 2033-2044.
Blake Snell: $65 million
The Dodgers signed Snell to a five-year, $182 million contract this past offseason that includes $65 million in deferred salary that will be paid in annual $5.5 million installments every July 1 from 2035-2046.
Freddie Freeman: $57 million
The Dodgers signed Freeman to a six-year, $162 million contract in March 2022 that includes $57 million in deferred salary that will be paid out from 2028-2040.
Will Smith: $50 million
The Dodgers signed Will Smith to a 10-year, $240 million contract extension in March 2024 that includes $50 million in deferred salary that will be paid out from 2034-2043.
Teoscar Hernández: $32 million
Between his two Dodgers contracts, Hernández is owed a total of $32 million in deferred salary. From his one-year, $23.5 million deal for the 2024 season, $8.5 million was deferred and due payable in $850,000 installments every July 1 from 2030-2039.
As part of the three-year, $66 million contract Hernández signed before the 2025 season, he will receive $23.5 million in deferred money from 2030-2039.
Tommy Edman: $25 million
The Dodgers signed Tommy Edman to a five-year, $74 million contract extension in November 2024 that includes $25 million in deferred salary that will be paid out from 2035-2044.
Tanner Scott: $21 million
The Dodgers signed Scott to a four-year, $72 million contract this past offseason that includes $21 million in deferred salary.
Justin Turner: $6 million
Although no longer with the Dodgers, Justin Turner will receive $6 million in deferrals from 2024-2026 as part of a contract extension he signed in February 2021.
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