The Los Angeles Dodgers have a significant amount of deferred pay obligations to eight players spanning from 2028 to 2046. This comes after the team signed Tanner Scott to a $72 million, four-year contract and Teoscar Hernández to a $66 million, three-year deal.
According to details revealed by The Associated Press, the Dodgers are on the hook for a total of $1.051 billion in deferred payments. The peak payment point for the team is set at $100.95 million for both 2038 and 2039.
Major League Baseball had proposed putting an end to this practice during collective bargaining in June 2021, but the players' association rejected the change. MLB Commissioner Rob Manfred acknowledged the concerns raised by fans about competitive balance but also praised the Dodgers for their commitment to fielding a strong team within the existing rules.
Among the players owed deferred payments are Shohei Ohtani, Mookie Betts, Blake Snell, Freddie Freeman, Will Smith, and Tommy Edman. Ohtani, for instance, is owed $680 million from 2034 to 2043.
The Dodgers' deferred obligations are structured to be paid out over several years, with varying amounts allocated annually. The team is required to fund the deferred money in an amount equal to its present-day value by the second July 1 following the season in which it is earned, as per the MLB's collective bargaining agreement.
For example, Hernández received a $23 million signing bonus as part of his recent deal, with salaries of $10 million this year, $12 million in 2026, and $14.5 million in 2027. The deferred portion of his contract will be paid in 10 equal installments each Dec. 1 from 2030 to 2039.
Similarly, Scott's deferred money will be paid in twelve $1.75 million installments each Dec. 1 from 2035 to 2046.
Overall, the Dodgers' approach to managing these deferred payments involves careful planning to ensure financial obligations are met in the future while maintaining competitiveness on the field.
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