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The Los Angeles Dodgers didn’t waste any time in trying to solidify a return to the World Series next season as they signed one of MLB’s best free agent pitchers Blake Snell to a massive deal.

The former left-handed Rays, Padres and Giants pitcher is a 2x Cy Young Award winner and is baseball’s first nine-figure deal of the winter as the two parties agreed to a five-year, $182 million deal. The Dodgers are now on track for a league-high $304 MILLION payroll for the 2025 season and are believed to not even be done yet with Japanese ace pitcher Roki Sasaki and All-Star outfielder Juan Soto in their sights as well.

Most importantly, however, is the fact that once again the Dodgers signed a big name using deferred money which will be paid out at a later time. The team did the same thing when they signed Shohei Ohtani’s historic contract after they deferred $680 million of his $700 million / 10-year contract till after 2033.

SNELL IS A HUGE ADDITION TO THE DODGERS

Snell will join a Dodgers pitching rotation that includes the return of Shohei Ohtani, who only hit last year after undergoing Tommy John surgery in the offseason, as well as Tyler Glasnow and Yoshinobu Yamamoto. The four will be joined by Dustin May and Tony Gonsolin as the team is reportedly leaning towards a six-man rotation to try and keep their pitchers healthy with as many days off between starts as possible. 

Snell’s signing is a major W for the Dodgers, but already opposing fans are screaming foul and calling for a salary cap, a ‘Dodgers tax,’ as well as complaining about the Dodgers constant use of ‘deferred money,’ which, as I explained, allows the team to pay the rest of a player’s contract at a later date.

Snell has had his share of injuries in the past, and after starting last season with a horrific 9.51 ERA over his first six starts, he soon settled down and pitched a brilliant 1.23 ERA his next 14 appearances. Although he has his share of health issues, there’s no doubt that Snell was the best pitcher on the free agent market and the Dodgers just added him to their already stacked roster that they just won a World Series with.

In addition to the Dodgers, the Red Sox, Yankees and Orioles were reportedly involved in discussions with Snell as well. The loss of him means that you can absolutely expect a bidding war for pitchers like Max Fried and Corbin Burnes as well as Jack Flaherty and Walker Buehler, the latter two who were Dodgers but are not believed to be re-signing with the team.

The Dodgers entered last year with the third-highest payroll at $249 million, only behind the Yankees and the Mets, whose billionaire owner Steve Cohen spent $304 million on last year’s team that lost to Los Angeles in the NLCS.

DEFERRED CONTRACTS IS THE NEW WAY

The largest implication of Snell’s signing by the Dodgers is the game-changing effect that it will have regarding player’s contracts. As of now, there is no limit and no reason why other teams can’t also offer deferred money, although it does come with a significant risk should an owner’s gamble not be able to pay off with a Championship or bring in the expected revenue and then is stuck with this massive payroll in later years.

But don’t be surprised if other teams – especially those with already big payrolls, start leveraging deferred contracts even more. 

The truth is, it’s the only way they’ll be able to compete against a team like the Los Angeles Dodgers.