Turns Out Teams Other Than The Dodgers Have Deferred Money Contracts Too
Most of the baseball world has spent the past few weeks criticizing the Los Angeles Dodgers for the crime of attempting to build the best possible team. The Dodgers, the argument goes, are bad for baseball because, unlike other organizations, they aren't refusing to sign free agents in an attempt to make more profit.
Part of the Dodgers' strategy to accumulate more talent, especially in high-tax California, is to use deferred contracts. Deferred money, essentially salary paid out after a player retires, can be beneficial for both the free agent and the team. For the player, it allows them to take that income in a state other than California, often somewhere like Arizona or Florida with lower or nonexistent state income taxes. For the team, it allows them to use those current savings to invest otherwise and potentially earn more revenue.
It's a strategy that every organization in baseball could choose to employ. And it turns out, quite a few of them are employing it, though with none of the criticism the Dodgers face.
Corbin Burnes was one of the biggest free agency signings of the winter, going from the Baltimore Orioles to Arizona Diamondbacks for over $200 million. And guess what? Turns out he deferred roughly $64 million of that salary until the 2030s.
Anthony Santander just signed with the Toronto Blue Jays, another organization that operates in a high-tax environment. He deferred up to $50 million of his contract too.
Interestingly, there's been little-to-no outrage about it.
Orioles' Cedric Mullins and Anthony Santander celebrate a solo HR vs. the Cleveland Guardians during the first inning at Progressive Field in Cleveland, Ohio. (Nick Cammett/Diamond Images via Getty Images)
Deferred Money Is A Strategy Across MLB
Yes, the Dodgers have huge amounts of deferred money owed in the 2030s, though most of that is due to Shohei Ohtani's contract. A contract that was offered to the San Francisco Giants, Toronto Blue Jays and Los Angeles Angels as well. Two of those teams accepted it.
Many of baseball's top free agent signings have utilized deferred money. Manny Ramirez, Chris Davis, Ken Griffey Jr., Bobby Bonilla, Max Scherzer and Francisco Lindor.
It's not new, or particularly uncommon. But because the Dodgers are doing it more consistently than other teams, it's now apparently worth criticizing.
Capitalism is good in life, but bad in sports, seems to be the prevailing wisdom. And it's providing a get out of jail free card for billionaire owners crying poor. Fans now seem to be more concerned with saving money than they are about demanding owners build the best possible team. It's why the Marlins enjoy blissful silence, free from criticism, despite using revenue sharing distribution to cover payroll and pocketing the rest of their revenue.
READ: Miami Marlins Are Ruining Baseball
Welcome to the modern era of baseball, where spending money is bad, and telling your fans to take a hike is good.