Dodgers Have to Pay $1 Billion in Deferrals Following Edwin Diaz Deal

The signing of closer Edwin Diaz opened up an interesting discussion on the Los Angeles Dodgers and their finances over the next two decades.

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As reported by ESPN, the inking of Diaz — a three-year deal worth $69 million — equates to the Dodgers deferring $1 Billion dollars moving forward.

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"Edwin Díaz won't receive all of his $69 million from the Los Angeles Dodgers until 2047, with the closer's deal raising deferred payment obligations for the two-time World Series champions to more than a billion dollars due to nine players.

Edwin Diaz
Dodgers

$69M, 3 years

Signing Bonus - $9M

$14M, $4.5M deferred - 2026
$23M, $4.5 deferred - 2027
$23M, $4.5M deferred - 2028

Conditional team option 2029: $6.5M

Plus in 2029: $750K each for 45gf; 50gf. $1M for 55g
— Jon Heyman (@JonHeyman) December 15, 2025

"The Dodgers are now on the hook for $1,064,500,000 through 2047, owed to Díaz, Shohei Ohtani, Mookie Betts, Blake Snell, Freddie Freeman, Will Smith, Tommy Edman, Tanner Scott and Teoscar Hernández. The Dodgers' high point due in a year is $102.3 million in 2038 and in 2039."

The breakdown itself is quite fascinating. To no one's surprise, the unique parameters surrounding Ohtani's deal accounts for most of the money owed into the future moving forward. Ohtani's deal pays him $2 million a year for 10 seasons ($20 million). The entire contract was valued at $700 million.

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"The bulk of the Dodgers' deferred money is owed to Ohtani, who will receive $680 million in payments from 2034 to 2043. Betts is next, with $115 million in salaries from 2033 to 2044 and the final $5 million of his signing bonus payable 2033-35.

"They are followed by Snell ($66 million 2035-46), Freeman ($57 million 2028-40), Smith ($50 million 2034-43), Hernández ($32 million 2030-39), Edman ($25 million 2037-44) and Scott ($21 million 2035-46)."

Deferrals have been a part of baseball business for years. The outrage over Ohtani's deal may have shed light to the public on that aspect of a contract. Having said that, most teams have deals on the books where deferrals are present.

The hubbub around Ohtani had to do with his decision (and willingness) in taking less money collectively speaking. Much of that has to do with his raking in of dough from off-the-field endorsements, advertisements, commercials, and other media opportunities.

Call it a competitive advantage or simply a shrewd way of doing business, the Dodgers have built a deferral model based on the success they've had, the financial windfall coming due to that success, and also the market in Asia they've cornered with the signings of Ohtani, Yoshinobu Yamamoto, and Roki Sasaki.

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