Dodgers’ deferred payments increase to $1.051 billion with Tanner Scott, Teoscar Hernández deals

By Canadian Press on February 25, 2025.

NEW YORK (AP) — The Los Angeles Dodgers owe $1.051 billion in deferred pay to eight players from 2028-46 following Tanner Scott’s $72 million, four-year contract and Teoscar Hernández’s $66 million, three-year deal.

Los Angeles’ high payment point is $100.95 million in both 2038 and ’39, according to details obtained by The Associated Press.

Major League Baseball proposed during collective bargaining on June 21, 2021, to put an end to the practice, but the players’ association rejected the change.

“The Dodgers have gone out and done everything possible, always within the rules that currently exist, to put the best possible team on the field and that’s a great thing for the game. That type of competitive spirit is what people want to see,” baseball Commissioner Rob Manfred said last week.

“By the same token,” he added, “it’s clear that we have fans in some markets that are concerned about the ability of the team in their market to compete with the financial resources of the Dodgers. And I think if we’ve been consistent on one point it is we try to listen to our fans on topics like this and I have heard people on this, believe me, I get a lot of emails about it.”

Scott’s contract includes $21 million in deferred money and Hernández’s $23.5 million.

Hernández is owed a total of $32 million in deferred pay from the team. He already was due $8.5 million as part of his $23.5 million, one-year deal for 2024, to be paid in 10 equal installments each July 1 from 2030-39.

Ohtani, Betts, Snell and Freeman among others owed deferred

Los Angeles also owes deferred payments to two-way star Shohei Ohtani ($680 million from 2034-43), outfielder/infielder Mookie Betts ($115 million in salaries from 2033-44 and the final $5 million of his signing bonus payable from 2033-35), left-hander Blake Snell ($66 million from 2035-46), first baseman Freddie Freeman ($57 million from 2028-40), catcher Will Smith ($50 million from 2034-43) and utilityman Tommy Edman ($25 million from 2037-44).

“It’s just how you account for it,” Dodgers president of baseball operations Andrew Friedman said when Snell was introduced. “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.”

Dodgers deferred obligations reach peak in 2038 and 2039

The Dodgers’ deferred obligations total $4 million each in 2028 and ’29, $7.2 million annually from 2030-32, $17.2 million in 2033, $90.2 million in 2034, $98.95 million a year from 2035-37, $100.95 million in 2038 and ’39, $98.75 million in 2040, $93.75 million annually from 2041-43, $20.75 million in 2044 and $7.25 million a year in 2045 and ’46.

Los Angeles must fund the deferred money in an amount equal to its present-day value by the second July 1 following the season in which it is earned, according to MLB’s collective bargaining agreement.

Hernández received a $23 million signing bonus payable on Feb. 1 as part of the deal announced by the World Series champions on Jan. 3.

His agreement includes salaries of $10 million this year, $12 million in 2026 and $14.5 million in 2027. The Dodgers will defer $7.5 million from this year and $8 million in each in 2026 and ’27, and that $23.5 million will be paid in 10 equal installments each Dec. 1 from 2030-39.

Scott’s deferred money is due in a dozen $1.75 million payments each Dec. 1 from 2035-46.

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AP MLB: https://apnews.com/MLB

Ronald Blum, The Associated Press