Blake Snell officially joined the Dodgers family on Tuesday. His arrival marks the latest in a series of big-money moves by a team fresh off a championship season. Snell’s new deal is a five-year, $182 million contract. It includes a hefty $52 million upfront, with another $66 million deferred through 2046. This deal pushes the Dodgers’ aggressive offseason spending even further, with Snell becoming the fourth high-profile, nine-figure signing the team has made in the past year. 

With Blake Snell now joining the likes of Shohei Ohtani, Yoshinobu Yamamoto, and Tyler Glasnow, his deal with the Dodgers follows a similar financial strategy to Ohtani’s massive contract—a significant portion of the payout being deferred. Besides the upfront amount, Snell will receive another $66 million, which will be paid out through 2046. This deferred payment strategy allows the Dodgers to secure high-caliber players without immediately impacting their payroll as much. 

Blake Snell expressed satisfaction with the structure of his deal  

When one of the reporters particularly asked about the deferred money, he said, “It played out the way people around me felt comfortable with. I felt comfortable with it, they felt comfortable with it.” Snell emphasized the nature of the negotiation, explaining that both he and the Dodgers worked together to find a solution that benefited both sides. The deferral arrangement, while unusual, seems to have struck the right balance. “I’m more focused on playing than money” he added.

For Snell, the opportunity to join a championship-caliber team like the Dodgers outweighed the immediate financial payout. Dodgers president of baseball operations Andrew Friedman explained how the team approaches complex contract negotiations, saying, “It’s always challenging. You’re looking to any lever you possibly can to get to a point where there’s overlap.” He added that while some deals align in a straightforward way, others require more creativity. That’s where strategies like deferrals come into play, helping the Dodgers find that sweet spot where both the team and the player are satisfied. 

The new deal with the Dodgers is a monster contract  

The contract is also another example of the Dodgers flexing their financial creativity. Thanks to the deferred money, Jon Becker of FanGraphs estimates Snell’s competitive balance tax (CBT) number to be around $31.36 million. A number below his $36.4 million average annual value (AAV). That’s the genius of the Dodgers’ front office, giving themselves a little room while still bringing in top talent.

Speaking of top-tier, Snell’s AAV ranks seventh all-time, just behind a list of legends: Shohei Ohtani ($70 million), Max Scherzer ($43.3 million), Justin Verlander ($43.3 million), Zach Wheeler ($42 million), Aaron Judge ($40 million), and Jacob deGrom ($37 million). Now, here’s where it gets really interesting. Coupled with Tommy Edman’s five-year, $74 million deal signed over the weekend, the Dodgers’ payroll is estimated to be just over $303.5 million for CBT purposes.

The Dodgers are maybe playing Monopoly but with deferred money. With this kind of financial firepower and flexibility, the Dodgers are all in on building a killer squad. So, while the deferred payments may not be the flashiest part of Blake Snell’s contract, they sure are a major part. The Dodgers are keeping their championship window wide open, while everyone else wonders how they make it all work. It’s like a secret recipe for success, and right now, it’s working beautifully.