Dodgers Sign Blake Snell, Reach $1 Billion in Deferred Payments

The Los Angeles Dodgers have made headlines by amassing over $1 billion in deferred payments to seven players, including recent signings Blake Snell and Tommy Edman. Snell's five-year, $182 million contract includes $66 million in deferred payments, which will be paid out through 2046, while Edman's $74 million deal includes $25 million in deferred money through 2044. This strategy allows the Dodgers to gain short-term payroll flexibility and navigate complex state tax implications, as well as reduce luxury tax liabilities. The team's significant deferred obligations raise questions about why other franchises are not adopting similar tactics. The Dodgers' ownership, Guggenheim Partners, is leveraging this approach to maximize investment returns while locking in top talent. The trend of deferred payments is becoming more common in MLB, reflecting a shift in how teams manage contracts and financial commitments.