Detailing Active MLB Deferred Contracts

Michael Ginnitti
Michael Ginnitti, Managing Editor & NFL/MLB ExpertDecember 13, 2023
© USA TODAY Sports

With deferrals on everybody’s mind, we thought it was a good time to bring to light all active MLB contracts that contain deferred compensation. The following is a look at 12 players, the total value of their contract, the calculated “present-day” value after deferrals, and the amount of cash that was deferred.

Rafael Devers (Red Sox, 3B)

Total Value: 10 years, $313,500,000
Present-Day Value: $291,526,861
Deferrals: $75,000,000

Devers signed his big payday the January prior to his final arbitration season in Boston. He scored a $20M signing bonus (paid $5M each of the first four seasons), while also agreeing to defer $75M (24%) of his $313.5M pact. Devers will earn $3.75M every February 1st & November 30th from 2034 thru 2043. The accounting saves Boston $2,197,314 against their tax payroll annually.

Chris Sale (Red Sox, SP)

Total Value: 5 years, $145,000,000
Present-Day Value: $128,000,000
Deferrals: $50,000,000

34% ($50, $10M annually) of Chris Sale’s 2019 extension in Boston was deferred until 2035, saving the Red Sox $3.4M against their CBT payroll every year. The 34-year-old is entering the final guaranteed season of this contract, with a $20M club option available for 2025 ($5M would be deferred to 2040 if it’s exercised).

Shohei Ohtani (Dodgers, SP/DH)

Total Value: 10 years, $700,000,000
Present-Day Value: $460,814,760
Deferrals: $680,000,000

Like the deal as a whole, Ohtani’s deferrals are unprecedented, as the 29-year-old agreed to push 97% of this contract out to 2034 in terms of cash payments. The move lowers the present day value of the contract by nearly $240M, dropping his annual CBT salary down nearly $24M in the process ($70M down to $46,081,476).

Mookie Betts (Dodgers, 2B/OF)

Total Value: 12 years, $365,000,000
Present-Day Value: $306,657,882
Deferrals: $115,000,000

5 months after the Dodgers acquired Betts from Boston, and 4 months before he would hit the open market for the first time, LA extended the MVP out another 12 seasons. 31.5% of that contract ($115M) was deferred until 2033, where Betts stands to earn between $8M-$11M annually each July 1st through 2044 (when he’ll be 51 years old). The move dropped Betts’ annual CBT salary from $30.41M per year, down to $25.5M per year.

Freddie Freeman (Dodgers, 1B)

Total Value: 6 years, $162,000,000
Present-Day Value: $148,195,494
Deferrals: $57,000,000

The Dodgers were able to secure Freeman away from the Braves by tacking on a 6th year that Atlanta refused to give into. In return, Freeman agreed to defer 35% of his new contract, lowering a potential $27M tax salary down to $24.7M. Freeman will see $4M each July 1st from 2028 through 2040 due to the deferred compensation.

Christian Yelich (Brewers, OF)

Total Value: 9 years, $215,000,000
Present-Day Value: $187,000,000
Deferrals: $28,000,000

The Brewers couldn’t wait to extend Yelich, adding on 7 years, $188.5M to an already in place 2 year, $26.5M contract (leftover from his extension with Miami). The new deal contained $28M of deferred compensation (14.8%), lowering his annual CBT salary by over $3M. Yelich will earn $2.3M each July 1st from 2031 through 2042.

Francisco Lindor (Mets, SS)

Total Value: 10 years, $341,000,000
Present-Day Value: $338,000,000
Deferrals: $50,000,000

Lindor’s megadeal in Queens included 14.6% ($50M) of deferred compensation, lowering his annual CBT salary from $34.1M, down to $33.8M for the Mets. In return, Lindor will earn $5M each July 1st from 2032 through 2041.

Edwin Diaz (Mets, RP)

Total Value: 5 years, $102,000,000
Present-Day Value: $93,000,000
Deferrals: $26,500,000

The largest relief pitcher contract in MLB history (for now) includes nearly 26% cash deferred, dropping the present-day value of the deal down to $93M, lowering his annual CBT salary from $20.4M to $18.6M. Diaz will earn $2.65M each July 1st from 2033 through 2042.

J.T. Realmuto (Phillies, C)

Total Value: 5 years, $115,000,000
Present-Day Value: $114,900,000
Deferrals: $10,000,000

While Realmuto agreed to defer $10M of his $20M salary for the 2021 season (to aid the Phillies cash flow coming out of the COVID season), the process did not create any adjustment to his overall CBT value. Realmuto will receive a $5M cash payment July 15th of 2026 & 2027, once his 5 year deal is completed after the 2025 season.

Nolan Arenado (Cardinals, 3B)

Total Value: 7 years, $214,000,000*
Present-Day Value: $183,333,330
Deferrals: $50,000,000

Arenado’s full contract chimes in at 8 years, $260M, signed with the Rockies back in February of 2019. However the deferred portion of this deal didn’t come into play until Colorado traded the annual Gold Glover to St. Louis. On top of the Rockies retaining $51M of cash per the trade, Arenado agreed to $50M of his remaining $199M (25%) with St. Louis. When the math all comes together, Arenado accounts for $25.5M against the Cardinals’ CBT annually through 2026. 

Patrick Corbin (Nationals, SP)

Total Value: 6 years, $140,000,000
Present-Day Value: $135,000,000
Deferrals: $10,000,000

Corbin’s 6 year contract (which comes to a close after 2024) contained a $10M deferral of his $35M base salary for the upcoming season. His tax salary drops from $23.3M to $22.5M in Washington this year.

Stephen Strasburg (Nationals, SP)

Total Value: 7 years, $245,000,000
Present-Day Value: $228,900,000
Deferrals: $80,000,000

$80M (32.6%) of Strasburg’s $245M free agent contract with the Nationals is deferred at $26.6M each July 1st of 2027, 2028, & 2029. The accounting move was simply a cash adjustment, as the Nationals gained no CBT benefit on this contract  ($35M per year), that runs through the 2026 season, despite Strasburg likely not being able to pitch again (injury).


Top