Much like several Dodgers contracts in recent years, Díaz has deferred money in his deal. In each year of the contract, $4.5 million of Díaz’s salary is deferred on the following schedule, per Ronald Blum at Associated Press: “Díaz’s deferred money is payable in 10 equal installments each July 1. The 2026 money is due from 2036-45, the 2027 money from 2037-46 and the 2028 money from 2038-47.”

The deferred salaries reduce the average annual value for competitive balance tax purposes from $23 million to $21,110,269, based on the October 2025 federal mid-term annual interest rate of 3.87 percent.

Díaz gets a signing bonus of $9 million, and the following salaries, per:

2026: $14 million ($4.5 million deferred)
2027: $23 million ($4.5 million deferred)
2028: $23 million ($4.5 million deferred)

There’s also a conditional option (somewhat similar to Blake Treinen’s 2024), per Blum at AP:

Los Angeles has a $6.5 million conditional team option for 2029 with no buyout. The option could be exercised if he has a specified injury through the end of the 2028 season and he does not end the season or postseason healthy, or if he has a specified surgery.

If the conditional option is exercised, he could earn $2.5 million in performance bonuses for 2029 based on games finished: $750,000 each for 45 and 50 games and $1 million for 55.

Díaz’s last two contracts are the top two contracts for a reliever by average annual value. His five-year, $102 million deal with the Mets also set a record for most guaranteed money for a reliever in one contract. After earning $64 million in the first three years in New York, Díaz in November opted out of the final two years and $38 million of the deal, and based on his new deal was right to do so.

Highest average annual value by a reliever

Edwin Díaz, Dodgers (2026-28), $23 million per year
Edwin Díaz, Mets (2023-27), $21.4 million
Josh Hader, Astros (2024-28), $19 million
Liam Hendricks, White Sox (2021-23), $18 million
Tanner Scott, Dodgers (2025-28), $18 million

Because Díaz rejected a qualifying offer from the Mets, the Dodgers for signing him will forfeit their second- and fifth-highest draft pick in 2026, and will have their 2026 international bonus pool reduced by $1 million.