Dodgers owe more than $1B in deferrals to 9 players after adding Díaz

34 comments
  1. and we’d defer 500 mill and we’d defer 500 more just to be the team who deferred 1 billion bucks to win a ship once more /s

  2. And they have to put it in escrow each year and they’re probably making bank on interest, smart.

  3. Didn’t the Diamondbacks get into some financial trouble from overdoing deferrals or am I thinking of the wrong team?

    Curious why the Dodgers aren’t all that concerned about running into the same issue. But then again, what the fuck do I know?

  4. I wonder if shohei will end up rolling some of his deferrals into an ownership stake in the team

  5. Here come the usual 50 comments along the lines of “What is going to happen to the Dodgers in a decade, they will be broke from having to pay this all out”….

    While not realizing that under the CBA you have to forward fund all deferrals.

  6. and the money that is owed is funded in a trust account invested in treasuries that will earn a return that will payout the deferred money, it isn’t like there isn’t a cash flow impact

  7. We have no idea how much they’ve put into escrow accounts. I’d imagine they can be invested too and we don’t know what the returns on those accounts are. S&P has had 20%+ returns since 2023 and Guggenheim is a financial firm. If they’re getting anywhere near the same returns as that they are coming out way ahead on these deals.

  8. Absolutely sustainable and great business 

    Also fair for the California tax payers 

    Fuck Manfred

  9. A billion? They might’ve already had that figures back from Japan

    Shohei is the best signing in professional sports history

  10. The first line of this article is just hilarious:

    >Edwin Díaz won’t receive all of his $69 million from the Dodgers until 2047

  11. I feel if you’re a player that’s awful with money (aka most players), having part of your salary deferred is a benefit.

  12. That number needs to be capped in the next CBA

    That or make it inverse of international
    Spending. There needs to be a penalty for deferrals

  13. How long until Gavin Newsome steps in to crack down on Dodger tax avoidance? Would be a boost to his Presidential campaign to go against the evil Dodgers lol.

  14. Ohtani is a cash unicorn. From what I read, LAD has already covered the full cost of that entire contract++ just on additional revenue these past two seasons that having him on the team brings in.

    It is what it is and likely something pro sport teams won’t see again for generations.

  15. It looks like they only have to fund approx. 95% of the deferral each year as they are allowed to assume a 5% increase on their investment of deferred funds.

    So by having a billion in deferred salary they free up 50 million in cash today to spend on the roster.

    Seems like a bit of a loophole.

    Also the 5% can be negotiated to a larger or smaller amount and since that is never disclosed they could be way more than 50 million in cash to spend present day.

    Crazy, accountants are crazy. All of their assumptions are perfect until they’re not.

  16. What’s crazy is that $1B+ deferral revenue has probably been made in just the last 2 years and earning the team interest. So shouldn’t be a problem to pay that all off in the next 20 years

  17. I’m curious how this will all play out with regards to a potential future salary cap. There is so much money that a lot of these top spending teams have committed way out past the expiration of the current CBA.

    Do contracts agreed to under the current CBA not count against a future cap? Does only a percentage of the contract count against the cap? Are the teams forced to renegotiate the contracts to bring them in line with that future CBA?

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