Dodgers' Deferred Payments Reach $1.051 Billion, Raising Financial Questions

The Los Angeles Dodgers are set to pay a staggering $1.051 billion in deferred compensation to eight players between 2028 and 2046, following significant contracts signed by Tanner Scott and Teoscar Hernandez. Scott's $72 million, four-year deal and Hernandez's $66 million, three-year contract have contributed to this massive financial obligation. According to details obtained by The Associated Press, the Dodgers' highest payment points will be $100.95 million in both 2038 and 2039, highlighting the long-term financial planning involved. This practice of deferred payments has sparked debate, especially after Major League Baseball's unsuccessful attempt to eliminate it during collective bargaining in 2021.
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Commissioner Rob Manfred addressed the issue last week, acknowledging the Dodgers' efforts to build a competitive team while adhering to current rules. "The Dodgers have gone out and done everything possible, always within the rules that currently exist, to put the best possible team on the field, and that's a great thing for the game," Manfred stated. However, he also noted concerns from fans in smaller markets about their teams' ability to compete financially with the Dodgers. "It's clear that we have fans in some markets that are concerned about the ability of the team in their market to compete with the financial resources of the Dodgers. And I think if we've been consistent on one point, it is we try to listen to our fans on topics like this," Manfred added, highlighting the ongoing debate over financial equity in the league.