The Dodgers Are Deferring Nearly a Billion Dollars of Salary Obligations

The Los Angeles Dodgers have capitalized on deferring salaries. Salary deferrals have allowed the team to continue bringing in some of the league’s best free agents while still paying high-end deals to their top players.

After extending All-Star catcher Will Smith earlier this week, the Dodgers are now close to one billion dollars in deferred salaries. The Dodgers signed Smith to a 10-year, $140 million deal, which included $50 million available to be paid from 2034-2043, raising the Dodgers’ total deferrals to $915.5 million.

These deferrals extend across five players, including Smith, Shohei Ohtani, Teoscar Hernández, Mookie Betts and Freddie Freeman. The Dodgers have deferred the most money from Ohtani’s contract. After signing Ohtani to a record-breaking 10-year, $700 million, it was revealed that most of Ohtani’s money was deferred.

Ohtani is set to make $2 million per year with the Dodgers, while the rest of the $680 million will be paid to Ohtani from 2034-2043. Though a $2 million salary is a bargain for a two-time AL MVP and a player like Ohtani, Ohtani easily makes up for it in endorsements. Ohtani is by far the highest earner among MLB players in endorsements, raking in $65 million this year.

Outside of Ohtani, the Dodgers owe the second most in deferrals to Betts, who is set to be paid $115 million from 2033-2044. Freeman is set to make $57 million from 2028-2040, and Hernández will get paid $8.5 million from 2030-2039, via the Associated Press.

Photo Credit: Kelvin Kuo-USA TODAY Sports

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