The Los Angeles Dodgers have turned a lot of heads so far this offseason. That’ll happen when you sign a generational player like Shohei Ohtani to a $700 million contract.
Another thing that stood out about this 10-year agreement, though, was the amount of money getting deferred. Ohtani will earn just $2 million per year during the life of his contract. He’ll then get a $68 million check each year between 2034 and 2043, according to The Athletic’s Fabian Ardaya.
About 97% of Ohtani’s money is getting deferred to a later date. The two-time AL MVP said he offered up this idea so the Dodgers could continue adding top-tier players to the roster.
While the structure of Ohtani’s contract is unprecedented, deferring player compensation isn’t a new practice. Los Angeles is on the hook for quite a bit of deferred money between Ohtani, Mookie Betts and Freddie Freeman, though.
USA Today’s Bob Nightengale said on December 17 that the Dodgers have racked up $852 million in deferred compensation for this trio.
A Look at Dodgers’ Contract Deferral Agreements
Ohtani’s deferred money agreement is mentioned above. He’ll make $20 million in player salary during the next 10 years and $680 million in the 10 years that follow.
Betts signed a 12-year, $365 million contract with the Dodgers that began in 2021. He was awarded a $65 million signing bonus, according to Spotrac. Betts also agreed to defer $115 million between 2033 and 2044. From 2033 to 2037, he’ll earn $8 million per year. It jumps up to $10 million in 2038 and 2039, and then once more to $11 million from 2040-44.
Freeman landed with Los Angeles ahead of the 2022 season on a six-year, $162 million deal. His contract runs through 2027 before deferred payments take effect from 2028 to 2040 for a total of $57 million. From 2028 to 2035, Freeman will earn $4 million from the Dodgers every year. That number jumps up to $5 million per year from 2036-40, per Spotrac.
Let’s fast forward to 2040 for some perspective. The total payout for this trio will come to a cool $84 million. Spotrac tells us that number is higher than the 2023 team payrolls for the Tampa Bay Rays, Pittsburgh Pirates, Baltimore Orioles, and Oakland A’s.
Dodgers’ Plan Will Be Worth It With Multiple Titles
Los Angeles has been one of the most consistently successful MLB organizations over the past decade.
They’ve qualified for the postseason each year since 2013. This has included 10 National League West division titles and three World Series appearances. The club has also posted five seasons of 100-plus regular-season wins, with four of them coming since 2019.
The biggest problem? It’s resulted in just one championship, which came in the pandemic-shortened 2020 season. The Dodgers obviously want to keep playing in October, but it’d be sweeter if they reached the mountaintop more frequently.
If multiple titles are won while Ohtani, Betts and Freeman are on the roster, then it’ll all be worthwhile. These three have combined to win four MVP Awards since 2018. They all also finished within the top five of fWAR in 2023. So, not only is the elite track record there, but they’ve remained among baseball’s best players. If the Dodgers do win more titles in the near future, this trio will likely have a lot to do with it.
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Dodgers Have Racked up Nearly $900 Million in Contract Deferrals