Dodgers Rumors: Edwin Diaz's Contract Includes More Than $13 Million In Deferrals

"The Los Angeles Dodgers came to an agreement on a three-year, $69 million contract with free agent closer Edwin Díaz to provide a major boost to their bullpen. The $23 million average annual value (AAV) of the contract set a new record for relievers, surpassing the $20.4 million mark Díaz received in his last deal with the New York Mets. It is the second major contract the Dodgers have handed out to a relief pitcher in as many years, following the signing of Tanner Scott last offseason."

"Scott signed a four-year contract with an AAV of $18 million, and $72 million in total. However, his contract included $21 million in deferred money, which brought Scott's cap hit to around $12 million from 2025-2026 and roughly $16 million in the final two years. According to Joel Sherman of the New York Post, Díaz's new contract with the Dodgers reportedly also includes deferred payments, though not to the same extent: Source: deferrals on Diaz deal with the Dodgers is $4.5M annually for the 3 years. For luxury tax purposes will calculate at roughly $21.1M - Joel Sherman (@Joelsherman1) December 9, 2025"

"The Dodgers are projected to be over the 2026 competitive balance threshold (CBT) of $244 million after the signing of Díaz. That's despite shedding $87 million in payroll heading into the offseason and the minor deferrals in Díaz's contract as well. That is of little consequence to the Dodgers, who have long been willing to absorb the extra penalties in the interest of constructing the best possible roster."

The Los Angeles Dodgers signed Edwin Díaz to a three-year, $69 million contract with a $23 million average annual value, a record AAV for relievers. The deal includes $4.5 million in annual deferrals, which reduces the immediate luxury tax calculation to roughly $21.1 million. The Dodgers previously signed Tanner Scott to a four-year, $72 million contract with $21 million deferred, lowering his near-term cap hit. Between Díaz and Scott, the Dodgers now employ two of the highest-paid relievers by AAV. The signing projects the team over the 2026 CBT, a cost the club is willing to absorb while MLB raises concerns about deferred salaries.

Read at Dodger Blue