Dodgers’ $1.06 Billion Time Bomb: How One Deal Could Haunt the Team for Decades

Edwin Díaz’s new Dodgers contract is a financial labyrinth stretching all the way to 2047 — yes, you read that right, 2047! . This three-year deal might seem straightforward at first glance, but when you peel back the layers, it bumps the Dodgers’ deferred payment obligations past a staggering $1.06 billion, spread across nine players. Díaz pockets a $9 million signing bonus early next year, followed by a $14 million salary, and then $23 million for the next two seasons, but here’s the kicker: $4.5 million of that gets deferred annually, turning his paycheck into a long game of installments that won’t fully pay out until decades down the road. Add in a conditional 2029 option and potential performance bonuses—and you’ve got one complex financial puzzle wrapped in a bow. As deferrals pile up for stars like Shohei Ohtani and Mookie Betts, the Dodgers are really playing the long financial haul. Díaz, a three-time All-Star with a razor-sharp 1.63 ERA last season, swapped out $38 million owed by the Mets to make this deal happen—talk about betting on the future! Curious about all the juicy contract details and what this means for the Dodgers’ salary landscape? LEARN MORE

NEW YORK — Edwin Díaz won’t receive all of his $69 million from the Dodgers until 2047, with the closer’s deal raising deferred payment obligations for the two-time World Series champions to more than $1.06 billion due to nine players.

As part of the three-year contract announced Friday, Díaz gets a $9 million signing bonus payable on Feb. 1, according to terms obtained by The Associated Press.

He receives a $14 million salary next year and $23 million in each of the following two seasons. The Dodgers will defer $4.5 million annually.

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.

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 gets a hotel suite on road trips and will make a charitable contribution of 1% of his income.

His deferred payments raise the Dodgers’ total to $1,064,500. Their high point due in a year is $102.3 million in both 2038 and 2039.

Los Angeles also owes deferred payments to two-way star Shohei Ohtani ($680 million from 2034-43), outfielder/infielder Mookie Betts ($115 million in salaries from 2033-44 and the final $5 million of his signing bonus payable from 2033-35), left-hander Blake Snell ($66 million from 2035-46), first baseman Freddie Freeman ($57 million from 2028-40), catcher Will Smith ($50 million from 2034-43) and utilityman Tommy Edman ($25 million from 2037-44), reliever Tanner Scott ($21 million 2035-46) and outfielder Teoscar Hernández ($32 million from 2030-39).

A three-time All-Star who turns 32 on March 22, Díaz had 28 saves in 31 chances last season with a 6-3 record and 1.63 ERA for a disappointing Mets team that failed to reach the playoffs despite spending the second most behind the Dodgers. He struck out 98 in 66 1/3 innings.

Díaz has 253 saves in 294 chances over nine seasons with Seattle (2016-18) and New York. Díaz agreed to a $102 million, five-year contract with the Mets after the 2022 season, a deal that included deferred money payable through 2042. He gave up $38 million he would have been owed in the final two years with the Mets.