The Dodgers’ deferred payment commitments have exceeded $1 billion for seven players following the contracts of Snell and Edman
The Los Angeles Dodgers’ obligations for deferred payments have now exceeded $1 billion after the contracts for Blake Snell and Tommy Edman. These deals add up to $1,006,500,000 that the team owes to seven players from 2028 to 2046.
Snell’s $182 million contract, announced on Saturday, includes $66 million in deferred payments, which will be paid to him through July 1, 2046. Edman’s $74 million, five-year deal, announced on Friday, includes $25 million that will be paid to him through July 1, 2044.
“It’s just how you account for it,” Dodgers president of baseball operations Andrew Friedman explained on Tuesday. “You have to fund a lot of it right now, and having that money go to work for you, we have — a lot of our ownership group are from financial backgrounds and can have that money going to work right now, and just making it — not something that sneaks up on us. We’re not going to wake up in 2035 and (say): ‘Oh my God, that’s right. We have this money due.’ We’ll plan for it along the way.”
Snell’s contract has an average that’s reduced to about $31.4 million annually for the Dodgers’ luxury tax payroll, and Edman’s average is about $12.9 million.
Snell’s deal includes a $52 million signing bonus, payable on January 25. His annual salary is $26 million, with $13.2 million deferred each year. This deferred money will be paid in equal installments every July 1 from 2035 to 2046.
“It just played out the way that people around me felt comfortable with,” Snell said. “I felt comfortable with. They felt comfortable with. We talked. Found something that could work for both of us and it’s kind of how we went with it. But, yeah, I’m more focused on playing than money.”
The Dodgers also have a $10 million conditional option for 2023, which could be exercised if Snell suffers a qualifying injury and stays on the injured list for 90 or more days. If Snell is traded, the new team will pay a $5 million assignment bonus.
Edman’s contract includes a $17 million signing bonus, payable on December 10, a $5 million salary for next year, and $12.25 million in each of the final four seasons, with $6.25 million deferred annually. The Dodgers have a $13 million option for 2030 with a $3 million buyout.
The deferred money for Edman will be paid in three installments each year, with each payment due on July 1:
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