Los Angeles Dodgers Owe Nearly $1 Billion in Looming Deferral Payments Through 2040, Slammed by MLB Fans

Forget the roar of the crowd and the crack of the bat—the latest battle brewing in MLB is over money, specifically the Los Angeles Dodgers‘ eye-watering billion-some in deferred payments. This financial maneuver has ignited a firestorm of debate, leaving fans divided.

Some see it as reckless spending, a ticking time bomb for the franchise’s future. Others hail it as a shrewd strategy, a way to lock in superstar talent while keeping the books balanced. Is this a gamble destined to implode or a masterstroke of financial wizardry? 

Are the Los Angeles Dodgers baseball’s biggest spenders or shrewd investors?

The Los Angeles Dodgers, already boasting a hefty payroll, have come under scrutiny for their ballooning deferred payments, which now total a staggering $865.5 million through 2040. This stupendous figure has drawn both criticism and admiration. The crux of the controversy lies in their aggressive use of deferrals, particularly in their recent stream of high-profile contracts.

As portrayed in the recent Fox News post on their Twitter (now X) handle, star players like Mookie Betts ($365 million/12 years), Freddie Freeman ($162 million/6 years), and Shohei Ohtani ($700 million/10 years) have all inked deals containing deferred portions of $120 million, $57 million, and $680 million, respectively.

Their latest addition, Teoscar Hernandez, came for a price of $23.5 million for a year, with $8.5 million of it deferred. This practice allows the team to spread out the financial burden of these massive contracts, keeping their current payroll manageable while locking in elite talents like Ohtani for the long haul. Many argue that this strategy prioritizes short-term competitiveness over long-term financial stability.

They point out the inherent risk of relying on future revenues to pay for present-day contracts, especially in a sport as unpredictable as baseball. Additionally, they raise concerns about the potential burden placed on future ownership groups, who could inherit crippling debt obligations.

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Proponents of the Dodgers’ approach, however, counter that deferred payments are simply a savvy way to navigate the ever-escalating costs of talent. By spreading out payments, the team can maintain their payroll flexibility and remain competitive without breaking the bank. Fans also highlight the potential benefits of having long-term financial commitments to star players, such as increased loyalty in their fanbase and more sponsorship opportunities. Now, how are the “fans” in question feeling about this burdensome, billion-like bolster?

Fans going gaga over the Dodgers’ deferrals was a much-expected blowout

Some fans snicker that while the team defers millions, they also seem to defer clinching wins in the postseason.

Some Los Angeles Dodgers die-hards scoff, calling it ‘pure silliness,’ muttering that Commissioner Rob Manfred only greenlit the deal because he’s hooked on those sweet international dollars.

Some think that with this billion-dollar deferral dance, MLB’s parity waltz looks more like a three-man tango for just Los Angeles, New York, and Chicago.

While some other die-hards in the nosebleeds worry if cheering for a World Series run will leave them cheering from cardboard boxes under the freeway in 2035.

Other fans, ever the chess maestros, chuckle, calling it a ‘deferred checkmate’ on the luxury tax threshold, spreading the pain like butter over a decade-long croissant.

Read More: Baseball’s Looming Crisis: Are the Los Angeles Dodgers’ Creative Deferrals Troubling Signs for MLB?

Ultimately, the Los Angeles Dodgers’ deferred payment strategy turns out to be a complex issue with no easy answers. While it allows the team to attract and retain top talent, it also raises concerns about their long-term financial health. Only time will tell if their gamble will yield championship glory.