Former Miami Marlins president David Samson says MLB planning to put an end to controversial salary deferral

In the world of baseball, money often talks louder than a bat cracking against a fastball. The Los Angeles Dodgers have been speaking volumes lately, not just with their on-field prowess but with their financial maneuvers off the diamond. Their strategy of deferring hefty portions of player salaries has caught the attention - and ire - of Major League Baseball’s higher-ups.

Deferred contracts aren’t a novel concept. Fans annually mark “Bobby Bonilla Day,” when the New York Mets cut a check exceeding a million dollars to a player who last donned their uniform in the late ’90s. Ken Griffey Jr., Manny Ramirez, and Bret Saberhagen are other notable names still drawing paychecks from deals inked in bygone eras.

However, the Dodgers have elevated this financial tactic to an unprecedented level. Their recent signings, including Shohei Ohtani’s staggering $700 million deal - of which $680 million is deferred -have pushed their total deferred salary commitments past the billion-dollar mark. This approach has enabled them to assemble a roster brimming with talent, culminating in their eighth World Series title in October 2024.

Yet, this financial wizardry hasn’t sat well with everyone. Former Miami Marlins president David Samson recently remarked on his “Nothing Personal” podcast, “The Dodgers have simply gone too far. They’ve deferred over a billion dollars... Now teams are beginning to wonder, ‘What do I have to do to compete with these guys?’” Samson suggests that MLB is contemplating a rule change to curb such practices.

Currently, MLB’s collective bargaining agreement imposes no limits on deferred money in contracts. Teams can defer as much as they and the player agree upon, provided they adhere to certain financial regulations. The Dodgers' method allows them to manage their payroll more flexibly, potentially sidestepping luxury tax thresholds while maintaining a star-studded lineup.

However, this strategy isn’t without its pitfalls. Deferred payments are essentially financial IOUs that, if not managed prudently, could hamstring the team’s future financial flexibility. MLB Commissioner Rob Manfred has acknowledged the potential issues, stating, “We’ve strengthened our rules in terms of the funding of deferred compensation in order to avoid that kind of problem.”

The Dodgers' approach has also sparked discussions about competitive balance within the league. Smaller-market teams may struggle to compete with franchises that can afford to defer large sums, potentially widening the gap between the league’s haves and have-nots. As Samson noted, other teams are left pondering how to keep up with the Dodgers' deep pockets and creative accounting.

As the 2025 season approaches, all eyes are on MLB’s next move. Will the league implement new regulations to level the financial playing field, or will teams continue to exploit the current system’s flexibility? The Dodgers, for their part, seem content to ride this financial wave, banking on their ability to manage future obligations while reaping present-day rewards.

In the end, baseball has always been a game of strategy, both on and off the field. The Dodgers' use of deferred contracts is just the latest play in a long game where the stakes are measured not only in runs and championships but also in dollars and cents.

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