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Baseball

Deferred contracts: the Dodgers’ successful strategy to ‘break’ MLB

News RoomBy News RoomDecember 19, 2025No Comments3 Mins Read
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With the completion of the 2025 season that gave the Dodgers their second consecutive championship, many fans are wondering what is the key to the success of the Los Angeles team. These questions stem from what is seen at first glance: titles, roster and marketing. But behind it all, discreetly, the franchise is also “breaking” MLB.

After winning two consecutive World Series, their payroll is higher, as are the penalties for the luxury tax. This is the result of a decade-long process of planning and operation under the following guidelines: international scouting, anticipation of national scouting, professionalization of player development and evolutionary study of players and coaching staffs to invest in them at the right time.

Mark Walter and the Los Angeles ownership group back big investments based on a directive that monitors the best players available to sign. Examples include the signings of Shohei Ohtani, Yoshinobu Yamamoto, Blake Snell, Edwin Diaz and Mookie Betts.With the signing of Diaz just a few weeks ago, the Dodgers solved their bullpen problem and also surpassed $1 billion in deferred contracts. The franchise is ready to spend more than $350 million and exceed the luxury tax in 2026, something it achieved with a discount in between.

Most of the deferred payments will be for Ohtani. There is no rush to settle that part, as they have time to do so, which allows them to design the continuity of a winning team for the next season and gives them the freedom to focus on merchandise sales, tickets and advertising opportunities to obtain income that will help pay off those payments.

The Dodgers share a record with Real Madrid, Barcelona and the Dallas Cowboys

To date, only three professional sports teams have reached the $1 billion revenue mark in a single season: the Dallas Cowboys in the NFL, and Real Madrid and Barcelona in La Liga. Between 2024 and 2025, the Dodgers joined that list due to a multi-million dollar television contract, merchandise and ticket sales, and Ohtani, their star player whose contract is largely deferred

While it is true that in the short term they must pay Ohtani the deferred payments, for now they are reaping the benefits of the best contract in sports today. The Los Angeles organization has television and radio agreements in California and abroad to broadcast its games and news about the team.

Team | Home match revenue

  1. Dodgers – $4.29 billion
  2. Yankees – $4.11 million
  3. Cubs – $3.25 million
  4. Red Sox – $2.93 million
  5. Astros – $2.69 million
  6. Parents – $2.42 million
  7. Phillies – $2.24 million
  8. Braves – $2.05 million
  9. Rangers – $1.96 million

Player | Deferred money

  1. Shohei Ohtani – $680 million
  2. Mookie Betts – $120 million
  3. Blake Snell – $66 million
  4. Freddie Freeman – $57 million
  5. Will Smith – $50 million
  6. Tommy Edman – $25 million
  7. Tanner Scott- $21 million
  8. Edwin Diaz – $19 million
  9. Teoscar Hernandez – $32 million

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