The Dodgers are on the hook for over $1bn
Having signed Edwin Díaz from the New York Mets on a three-year contract, the Los Angeles Dodgers have added to their deferred payment burden.
When the Dodgers announced the signing of Edwin Díaz, the most eye‑catching number wasn’t the length of the deal or his career save totals. It was the way the Puerto Rican closer will actually receive his paychecks.
A significant portion of the money will start arriving more than a decade from now and continue through 2047 - yet another example of the now‑classic way the organization structures its biggest contracts.
With Díaz, the club’s deferred‑money commitments reached $1.06 billion, according to AP’s accounting, spread across nine players. That total isn’t tied to a single splashy deal, but rather to a series of offseason decisions in which Los Angeles has consistently prioritized year‑to‑year payroll flexibility while accumulating long‑term financial obligations.
Díaz agreed to a three‑year, $69 million contract that includes a $9 million signing bonus, a $14 million salary in 2026, and $23 million in each of the following two seasons. Of that amount, $4.5 million per year will be deferred and paid out in 10 equal installments each July 1 from 2036 through 2047. The deal also includes a conditional option for 2029 and performance bonuses tied to games finished.
Soon. pic.twitter.com/kFUCzHJ8MV
— Los Angeles Dodgers (@Dodgers) December 13, 2025
A familiar template
The closer joins a group that already features Shohei Ohtani, Mookie Betts, Blake Snell, Freddie Freeman, Will Smith, Tommy Edman, Tanner Scott, and Teoscar Hernández. In every case, the Dodgers blended deferred payments with immediate cash, a structure that has become a staple of the club’s roster‑building approach.
Ohtani deferred $680 million of his $700 million deal. Betts pushed back $115 million on his extension. Snell deferred $60 million, Freeman $57 million, and Hernández $31.5 million. Taken together, those numbers illustrate the volume of payouts Los Angeles is slated to cover throughout the 2030s and beyond.
Deferred money directly affects the competitive balance tax, since MLB calculates CBT payroll using the average annual value of contracts. By spreading payments over longer horizons, the club reduces the annual CBT hit relative to the total guaranteed amount.
Cash up front as the counterweight
The deferrals don’t operate in a vacuum. Over the past five years, the Dodgers have paired them with hefty signing bonuses. Blake Snell received $52 million at signing. Teoscar Hernández got $23 million. Will Smith landed $30 million. Tommy Edman collected $17 million. Tanner Scott took home $20 million. Betts’ contract includes a $65 million bonus paid in yearly installments.
Recent deals without deferred money have also featured substantial bonuses, such as the $50 million Yoshinobu Yamamoto received at signing or the $10 million included in Tyler Glasnow’s extension. Altogether, those bonuses amount to $295 million the club has paid out over the past half‑decade.
This combination gives players significant cash up front while pushing the remainder of their salary far into the future. In some cases, players even receive their bonuses in states with more favorable tax structures.
What will Díaz bring to the Dodgers?
On the field, Díaz fills a very specific need. The bullpen was one of the team’s most volatile units this past season. The right‑hander is coming off a year in which he converted 28 of 31 save chances with a 1.63 ERA and 98 strikeouts in 66.1 innings for the Mets. Over nine MLB seasons, he has racked up 253 saves between Seattle and New York.
And Díaz is no stranger to deferred‑money deals. His previous contract with the Mets included deferrals through 2042, and he surrendered $38 million from the final two years of that agreement.
The Dodgers’ signing of Díaz adds depth to the bullpen and extends a financial practice that has become a signature of the franchise. Its effects will be felt not only on the annual payroll but also across the organization’s long‑term financial commitments for decades to come.
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