Dodgers, Edwin Diaz Deal Includes Deferrals

"The world of Major League Baseball endured seismic ripples Tuesday morning - as star closer Edwin Diaz reportedly agreed to a multi-year deal with the Los Angeles Dodgers. Los Angeles had been long rumored to be a team in search of bullpen reinforcements. Diaz was always seen as a guy that would want a five-year deal perhaps north of $100 million."

"More details have come out as it pertains to the mechanics of the deal itself. Joel Sherman reported that there are minor deferrals involved. Diaz is slated to make $23 million annually - though that will now become just a shade under $19 million. Though the Dodgers have some reputation for being the only team extensively using deferrals (largely based on Shohei Ohtani's contract), this is not a new tactic. Teams all across the sport have used - and continue to utilize - deferrals."

"Ironically, the Mets reported offer for Diaz according to Sherman also involved deferrals. Deferrals were also reportedly present in the $210 million contract pitcher Dylan Cease agreed to with the Toronto Blue Jays. With Diaz now in tow, the Dodgers have solidified the backend of their bullpen. He's undoubtedly among the premier relievers in the sport. The move should enable Tanner Scott to revert back to a more comfortable spot as a high-leverage setup man. This was predominantly the role Scott played with the San Diego Padres."

Edwin Diaz agreed to a three-year, $69 million contract with the Los Angeles Dodgers that includes minor deferrals, officially listed at $23 million annually but reduced to just under $19 million cash per year. The deferrals total $4.5 million annually for three years and produce an approximate luxury tax figure near $21.1 million. Deferrals have become common across MLB, appearing in other high-profile deals such as Dylan Cease’s $210 million contract and reportedly in the Mets’ offer for Diaz. The signing strengthens the Dodgers’ bullpen, allows Tanner Scott to return to a high-leverage setup role, and adds left-right relief flexibility.

Read at Dodgers Nation