The Los Angeles Dodgers are world champions, but success doesn’t come cheap.
After beating the New York Yankees in the World Series, Los Angeles recently agreed to lucrative new contracts with free agent pitcher Blake Snell and returning infielder Tommy Edman, deals that bring the club’s total deferred payments to more of a billion dollars for only seven players. .
Snell’s $182 million contract, announced Saturday, includes $66 million in deferred money payable to the pitcher through July 1, 2046, according to terms of the contract obtained by The Associated Press. He will receive a signing bonus of $52 million, payable on Jan. 25, and annual salaries of $26 million, of which $13.2 million each year will be deferred. The deferred money will be paid in equal installments every July 1, 2035 to 2046.
And since Snell is a resident of Washington state, the signing bonus will not be subject to California income tax.
Meanwhile, Edman’s five-year, $74 million contract, announced Friday, includes $25 million payable to the infielder and outfielder through July 1, 2044.
Los Angeles now owes deferred payments of $1,006,500,000 to seven players between 2028 and 2046. And that number could grow if Dodgers fans find a way to lure free agent slugger Juan Soto to the West Coast. Soto could be worth something close to $700 million, the same sum the team gave Shohei Ohtani before the season, much of which is deferred.
Blake Snell and his girlfriend Haeley Mar pose for a photo after he signed his nine-figure contract in Los Angeles.
Soto is rumored to be on the market for a $700 million deal. Can the Dodgers afford that too?
Both Soto and Snell are represented by MLB super agent Scott Boras.
Deferred payments are becoming the norm in Major League Baseball, where the New York Mets are routinely mocked for their $1 million annual payments to retired All-Star Bobby Bonilla.
But today, these agreements are common because they give teams short-term salary flexibility and help players navigate difficult state income tax situations.
It also helps the Dodgers reduce luxury tax payments. For example, by amortizing the contract over several decades, Snell’s average annual salary is discounted to approximately $31.4 million annually for the Dodgers’ luxury tax payroll and Edman’s to approximately $12.9 million.
Los Angeles has a $10 million conditional club option for 2023 that could be exercised if Snell has a qualifying injury as specified in the contract and spends 90 or more consecutive days on the injured list due to the qualifying injury and has not been traded. .
If Snell is traded, he would receive a $5 million allocation bonus, payable by the acquiring team.
You also get a hotel suite when traveling by road.
Tommy Edman celebrates as he comes to the plate after his solo home run in Game 2.
Ohtani won his first World Series after signing a $700 million contract with the Dodgers.
Edman receives a $17 million signing bonus due Dec. 10, a $5 million salary next year and $12.25 million in each of the final four seasons, of which $6.25 million annually will be deferred. The Dodgers have a $13 million option for 2030 with a $3 million buyout.
Edman’s deferred money for each year will be paid in three installments, with each payment due July 1:
- for 2026, $2.5 million each in 2035 and 2036, and $1.25 million in 2037.
- for 2027, $1.25 million in 2037 and $2.5 million each in 2038 and 2039.
- for 2028, $2.5 million each in 2040 and 2041, and $1.25 million in 2042.
- for 2029, $1.25 million in 2042 and $2.5 million each in 2043 and 2044.
Snell and Edman will each make a charitable contribution of 1 percent of their salary.
Ohtani, the reigning National League MVP, is owed $680 million between 2034 and 2043 as part of a record $700 million, 10-year contract through 2033.
Infielder/outfielder Mookie Betts is owed $115 million in salary from 2033-44 and the final $5 million of his signing bonus payable from 2033-35, all part of a $365 million, 12-year contract through 2032.
First baseman Freddie Freeman is owed $57 million between 2028 and 2040 on a six-year, $162 million contract through 2027.
Catcher Will Smith is owed $50 million payable between 2034 and 2043 as part of a 10-year, $140 million contract through 2033.
Outfielder Teoscar Hernández will receive $8.5 million between 2030 and 2039 as part of a one-year contract and $23.5 million for 2024.