In the world of professional baseball, the Los Angeles Dodgers have found themselves with a significant financial obligation in the form of deferred payments. These contracts, which involve some of the team's key players, have far-reaching implications for the team's financial future.

Unraveling the Dodgers' Deferred Payment Puzzle

Blake Snell's Contract and Deferred Payments

Blake Snell's $182 million contract, announced on Saturday, comes with a substantial $66 million in deferred money. This deferred payment will be payable to the pitcher through July 1, 2046. The average annual value of his contract, when factoring in the deferred money, is discounted to about $31.4 million for the Dodgers' luxury tax payroll. Snell will receive a $52 million signing bonus on Jan. 25 and yearly salaries of $26 million, with $13.2 million annually deferred and payable in equal installments each July 1 from 2035 to 2046. There is also a $10 million conditional club option for 2023 that could be exercised under specific circumstances. If Snell is traded, he will receive a $5 million assignment bonus. Additionally, he gets a hotel suite during road trips. His agent, Scott Boras, humorously noted that with a $52 million signing bonus, deferrals are a good thing.

Tommy Edman's Deal and Deferred Payments

Tommy Edman's $74 million, five-year deal, announced on Friday, includes $25 million in deferred payments payable to the infielder and outfielder through July 1, 2044. He will receive a $17 million signing bonus on Dec. 10, a $5 million salary next year, and $12.25 million in each of the final four seasons. Of this, $6.25 million annually will be deferred and paid in three installments each July 1. For 2026, it will be $2.5 million each in 2035 and 2036, and $1.25 million in 2037. In 2027, it will be $1.25 million in 2037 and $2.5 million each in 2038 and 2039. For 2028, it will be $2.5 million each in 2040 and 2041, and $1.25 million in 2042. For 2029, it will be $1.25 million in 2042 and $2.5 million each in 2043 and 2044.

Other Key Players and Their Deferred Payments

Two-way star Shohei Ohtani is due $680 million from 2034 to 2043 as part of a record $700 million, 10-year contract through 2033. Infielder/outfielder Mookie Betts is owed $115 million in salaries from 2033 to 2044 and the final $5 million of his signing bonus payable from 2033 to 2035 as part of a $365 million, 12-year contract through 2032. First baseman Freddie Freeman is owed $57 million from 2028 to 2040 in a $162 million, six-year contract through 2027. Catcher Will Smith is due $50 million payable from 2034 to 2043 as part of a $140 million, 10-year contract through 2033. Outfielder Teoscar Hernandez will get $8.5 million from 2030 to 2039 as part of a $23.5 million, one-year deal for 2024.The Dodgers' president of baseball operations, Andrew Friedman, emphasizes that while these deferred payment amounts may seem large, they are part of the standard operating procedure for many teams. He notes that the Shohei Ohtani contract is an extreme case but that the others are within the norm. He also points out that having a number of star players with deferrals has made it something that players have no issue with and in some cases may even desire, helping to close deals in difficult situations.