NEW YORK — The Los Angeles Dodgers face a colossal financial commitment amounting to $1.051 billion in deferred payments, expected to be made to eight players across an 18-year span from 2028 to 2046. This situation arises following the four-year $72 million contract extension of pitcher Tanner Scott and Teoscar Hernández’s $66 million, three-year deal.
According to contract details, the Dodgers will reach a peak payout of $100.95 million in the years 2038 and 2039. Despite Major League Baseball proposing to eliminate deferred payment practices during collective bargaining in June 2021, the players’ association dismissed the suggestion, allowing such arrangements to continue.
Baseball Commissioner Rob Manfred commented on the team’s financial strategies, stating, “The Dodgers have adhered to the rules while striving to assemble the best possible team, which is commendable for the sport. Fans appreciate such competitive spirit.” However, Manfred acknowledged concerns from supporters in markets with less financial muscle, adding that fan feedback is taken seriously.
Under Scott’s contract, $21 million is deferred, while Hernández’s agreement includes a total of $32 million in deferred pay. Particularly noteworthy is Hernández’s condition to receive $8.5 million spread across ten July installments from 2030 to 2039, as part of his 2024 one-year deal.
In addition to these players, Los Angeles has deferred obligations to several other star athletes. A significant sum of $680 million is owed to Shohei Ohtani from 2034-43, while Mookie Betts, Blake Snell, Freddie Freeman, Will Smith, and Tommy Edman will also receive substantial deferred salaries spanning up to 2046.
Dodgers’ president of baseball operations, Andrew Friedman, explained the practical approach behind these decisions, suggesting that the team is mindful and prepared for when these payments come due. According to him, appropriate planning will mitigate any future financial surprises.
The Dodgers’ deferred commitments display a complex structure, with relatively minimal payments early in the obligation schedule and significant figures mid-way. Notably, annual obligations will escalate to around $100 million by the late 2030s, tapering off to about $7.25 million by 2045 and 2046.
A clause in MLB’s collective bargaining agreement necessitates that the Dodgers set aside the contemporary value of the deferred money by the second July 1 after the season it is earned. Hernández’s contract includes a hefty $23 million signing bonus, reflecting the team’s continued investment in elite talent. His yearly salaries are structured to rise incrementally through 2027, with deferred portions to be distributed from 2030 onwards.
Meanwhile, Scott’s contract stipulates deferred payments of $21 million, to be disbursed over 12 years beginning 2035, closing another facet of Los Angeles’s long-term financial planning.
