THE MILESTONE: A $1.06 BILLION DEBT TO THE FUTURE
LOS ANGELES, CA—As the champagne from their 2025 World Series celebration barely dries, the Los Angeles Dodgers have officially crossed a financial Rubicon. Following the high-profile signing of closer Edwin Díaz to a three-year, $69 million deal on December 12, 2025, the franchise’s total deferred payment obligations have officially surpassed the $1 billion mark.
The Dodgers now owe a staggering $1,064,500,000 in guaranteed money to nine players—payments that stretch all the way to 2047. While this strategy has allowed the front office to assemble a “superteam” today, it has created a financial landscape never before seen in professional sports.
THE DEFERRED “NINE”: WHO IS ON THE TAB?
The $1.06 billion isn’t just the “Ohtani effect.” While Shohei Ohtani represents the majority of the debt, Andrew Friedman has used deferrals as a standard tool for nearly every major acquisition.
| Player | Total Deferred Amount | Payment Window |
| Shohei Ohtani | $680 Million | 2034 – 2043 |
| Mookie Betts | $120 Million | 2033 – 2044 |
| Blake Snell | $66 Million | 2035 – 2046 |
| Freddie Freeman | $57 Million | 2028 – 2040 |
| Will Smith | $50 Million | 2034 – 2043 |
| Teoscar Hernández | $32 Million | 2030 – 2039 |
| Edwin Díaz | $13.5 Million | 2036 – 2047 |
| Tanner Scott / T. Edman | $46 Million (Combined) | 2030s – 2040s |
THE “PEAK YEAR” PRESSURE
The quiet tension mentioned by analysts centers on the late 2030s. In 2038 and 2039, the Dodgers will be contractually obligated to pay over $102 million annually in deferred salaries alone.
To put that in perspective: the Dodgers will start those seasons $100M “in the red” before signing a single active player, paying a clubhouse attendant, or buying a bag of sunflower seeds.
WHY THE GAMBLE LOOKS BRILLIANT (FOR NOW)
The Dodgers are betting on three specific factors to outrun the “bill”:
- The Time Value of Money: Under the CBA, the present-day value of Ohtani’s $68M annual deferral is only about $46M. By the time 2034 rolls around, inflation will likely make that $68M feel significantly smaller than it does today.
- The Ohtani Revenue Machine: Reports indicate that Ohtani-related sponsorships and international TV deals brought in nearly $100 million in NEW revenue for the Dodgers in 2025 alone. Essentially, Ohtani is paying for his own future checks.
- Escrow Requirements: Per MLB rules, the Dodgers must fund these deferrals within two years of the work being performed. This means the money isn’t “missing”—it’s being invested in accounts that the Dodgers hope will grow faster than the interest rate they owe the players.
THE RISKS: WHAT IF THE BALANCE BREAKS?
The “tradeoff” comes with two major shadows. First, the 2026 CBA Negotiations are looming. Rival owners, frustrated by what they call the “Dodger Loophole,” are expected to push for a hard salary cap or stricter limits on deferrals. Second, if the regional sports network (RSN) bubble continues to burst, the Dodgers’ massive $8.35 billion TV deal—the bedrock of their spending—could face its own stability questions.
“The Dodgers aren’t just playing baseball; they’re running a hedge fund with a batting order,” one rival GM noted. “It works as long as the market stays up. But the bill always finds its way to the mailbox eventually.”
