Edwin Díaz’s New Dodgers Deal Delays $69 Million Payout to 2047, Adding Over $1 Billion in Deferred Obligations

Edwin Díaz’s new Dodgers contract will see him earn $69 million over a decade, but the bulk of that money will not be paid until 2047.

Contract Structure

On Friday, the Los Angeles Dodgers announced a three‑year agreement that includes a $9 million signing bonus payable on February 1, a $14 million salary in 2025, and $23 million in each of the following two seasons. The $14 million salary is the first year of the contract’s base pay, and the $23 million salaries in 2026 and 2027 are higher than the previous year’s salary, reflecting the club’s confidence in the closer. The deal also incorporates a $6.5 million conditional team option for 2029 that carries no buy‑out.

Deferred Payment Structure

The Dodgers will defer $4.5 million annually, spreading the remaining $69 million over ten equal installments that begin on July 1 each year. These installments are structured to be paid on July 1, aligning with the Dodgers’ payroll schedule and providing the club with predictable cash flow. Specifically, the 2026 portion is due from 2036 to 2045, the 2027 portion from 2037 to 2046, and the 2028 portion from 2038 to 2047, extending the payment period into the late 2030s. The 10 equal installments spread the deferred money over a decade, ensuring that the club can manage its financial obligations over a long horizon.

Conditional Option and Injury Clause

Los Angeles can exercise the 2029 option if Díaz suffers a specified injury through the end of 2028 and does not return healthy for the remainder of the season or postseason, or if he undergoes a specified surgery. The option is a standard clause that allows the club to retain the player under certain injury criteria. If the option is exercised, the player can earn up to $2.5 million in performance bonuses, a significant incentive for a closer.

Performance Bonuses

If the option is exercised, Díaz could earn $2.5 million in performance bonuses for 2029 based on games finished: $750 000 for 45 games, $750 000 for 50 games, and $1 million for 55 games. These bonuses reward the closer for maintaining a high level of performance throughout the season.

Additional Perks

Díaz will receive a hotel suite on road trips, providing comfort during travel, and will donate 1 % of his income to charity, reflecting his commitment to giving back.

Total Deferred Obligation

With the new terms, the Dodgers’ total deferred obligation rises to $1,064,500 million, one of the largest in MLB and indicating the club’s willingness to invest in high‑value talent. Their largest single‑year payment will be $102.3 million in both 2038 and 2039, the highest single‑year obligations the club faces in the next decade.

Other Players’ Deferred Payments

The club also owes deferred payments to other stars. Shohei Ohtani will receive $680 million from 2034 to 2043, a two‑way star whose payments span a decade. Mookie Betts will receive $115 million in salaries from 2033 to 2044, plus $5 million of his signing bonus from 2033 to 2035. Blake Snell will receive $66 million from 2035 to 2046, Freddie Freeman $57 million from 2028 to 2040, and Will Smith $50 million from 2034 to 2043. Tommy Edman will receive $25 million from 2037 to 2044, Tanner Scott $21 million from 2035 to 2046, and Teoscar Hernández $32 million from 2030 to 2039. These deferred obligations shape the club’s payroll for the next decade.

Bullpen Weakness

The Dodgers’ bullpen struggled last season, and the club hopes Díaz’s presence will stabilize the late‑innings. His experience and track record make him a key piece in addressing that weakness.

Player Background

Díaz, a three‑time All‑Star who turns 32 on March 22, posted 28 saves in 31 chances with a 6‑3 record and a 1.63 ERA for the Mets, a team that missed the playoffs despite spending the second‑most money behind the Dodgers. He struck out 98 batters over 66 ⅓ innings, a high strikeout rate that underscores his pitching skill. Over nine seasons, he has accumulated 253 saves in 294 chances, showing his durability and consistency.

Previous Contract

After the 2022 season, Díaz signed a five‑year, $102 million contract with the Mets that included deferred money through 2042. He gave up $38 million he would have been owed in the final two years with the Mets, a trade‑off for the new contract. The new deal reflects a balance between immediate earnings and long‑term financial planning.

Key Takeaways

• Díaz’s contract pushes most of his $69 million payout to 2047, adding over $1 billion in deferred obligations for the Dodgers and other star players.
• The club’s largest single‑year payment will be $102.3 million in 2038 and 2039, a significant payroll commitment.
• The conditional option offers a potential $2.5 million in 2029 performance bonuses, contingent on injury status.

The Dodgers’ new deal positions the club to secure a dominant closer while managing a complex web of deferred payments that will shape its payroll for the next decade.