The New York Mets gave Juan Soto the largest contract in MLB history when the two sides agreed to a 15-year, $765 million deal that broke the record Shohei Ohtani held when he signed his 10-year, $700 million contract with the Los Angeles Dodgers one year prior.
While Soto now holds the honor for richest contract in sports history, Ohtani’s deal with the Dodgers is still the most unique with $680 million of it deferred with payments beginning in 2034. Ohtani’s contract also includes language that requires the Dodgers to re-invest their present day savings back into the roster in pursuit of World Series titles.
Ohtani’s contract, coupled with the Dodgers’ continued use of deferred salary in deals, has sparked plenty of debate over the strategy. It’s permitted under MLB’s collective bargaining agreement (CBA) and other teams utilize the strategy of deferred money, but only the Dodgers have taken on heavy criticism.
Even MLB commissioner Rob Manfred has weighed in and expressed general concerns.
But former San Francisco Giants president of baseball operations Farhan Zaidi is against the possibility of deferrals being regulated. During an appearance on “Foul Territory,” Zaidi credited the Dodgers and explained how deferrals can help bring a contract together:
“Obviously the Ohtani deal was at a completely different level from most of the deals that the Dodgers do. I feel like it’s just a lever to get a deal done. It’s really tough to negotiate a deal. Both parties have notions of what’s fair, so you really want every lever at your disposal to find common ground.
“Performance bonuses are an example of that, signing bonuses are an example of that. It’s not just years and dollars, but there are other ways you may try to bridge the gap. To the Dodgers’ credit, they have used this notion of deferrals to bridge that gap.
“They may be at $30 (million) and a player wants $40 (million), and they say, ‘Hey, how about if we structure a deal with some deferrals where you get the money later but you get your number?’ So I don’t really see an issue with that.
“Does MLB need to put more rules and regulations in place on the quantity of those deferrals? I don’t really think so. But if people feel like it makes sense, then I think MLB will look at it.
“It doesn’t affect your competitive balance tax number, those are calculated and take into account deferrals. So there isn’t some kind of game you can play with deferrals, other than it’s just another way to get deals done. I give the Dodgers credit that they’ve been able to use that to their advantage.”
That is not just bias from the former Dodgers general manager, as the Giants offered Ohtani the same exact contract under Zaidi’s tenure. The Giants also deferred payment on Blake Snell’s signing bonus when they added him on a two-year, $62 million deal prior to the 2024 season.
And while deferrals are a great tool, it is not fool-proof as evident by Teoscar Hernández’s rumored reluctance to include deferred salary during the negations with the Dodgers.
Ultimately, Hernández and the Dodgers agreed to a three-year contract that includes $23.5 million in deferred money.
Farhan Zaidi considering Dodgers return
A recent report has suggested that Zaidi could rejoin the Dodgers front office after he was let go by the Giants this past season, but that is not his only option as other teams have reached out as well.
Zaidi is grateful for the Dodgers’ interest but is still “figuring out” his next move.
Have you subscribed to the Dodger Blue YouTube channel? Be sure to ring the notification bell to watch player interviews, participate in shows and giveaways, and stay up to date on all Dodgers news and rumors!
