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Dodgers’ Deferred Payroll Reaches $1.051 Billion: Smart Strategy or Huge Risk?

Originally posted on Athlon Sports | By Alvin Garcia | Last updated Feb 27, 2025 10:00 AM ET

The Los Angeles Dodgers have aggressively approached player contracts, pushing their deferred salary obligations to a staggering $1.051 billion.

With recent deals for Tanner Scott and Teoscar Hernández, the team has further cemented its strategy of deferring payments well into the future. At first glance, this might seem like an overwhelming financial burden.

However, Dodgers president of baseball operations Andrew Friedman has reassured that the organization is carefully planning for these long-term payments. The idea is simple: Spend now to build a super team while structuring payments to avoid massive payroll hits in any season.

Shohei Ohtani leads the pack with $680 million in deferred salary between 2034 and 2043. Mookie Betts is owed $115 million from 2033 to 2044, while Blake Snell, Freddie Freeman, Will Smith, and Tommy Edman all have significant deferred payments stretching into the 2040s.

Even Hernández and Scott, recent signings, are owed a combined $44.5 million in deferred payments, extending well into the future. The strategy provides the Dodgers with immediate financial flexibility, allowing the team to build a roster filled with superstar talent.

However, critics argue that this approach could haunt the team if revenue streams decline or financial management falters. Los Angeles will owe more than $100 million annually in 2038 and 2039, a hefty price to pay for players who may be long retired.

Still, if Los Angeles continues to dominate, win championships, and generate revenue, its deferred payment strategy could be a forward-thinking masterstroke rather than a financial disaster. Only time will tell whether this bold approach leads to long-term success or future financial complications.

This article first appeared on Athlon Sports and was syndicated with permission.

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