Summary
The Los Angeles Dodgers have adopted a strategy similar to Bobby Bonilla's famous contract deferral approach to manage their player salaries. This method allows them to spread out payments over time, reducing immediate financial burden and potentially lowering taxes. The Dodgers' recent player acquisitions highlight the use of this strategy.
Key Facts
- Bobby Bonilla is known for popularizing deferred contract payments in baseball.
- The Dodgers use contract deferrals to manage costs and attract top players.
- Shohei Ohtani will defer $680 million of his $700 million contract with the Dodgers.
- Kyle Tucker will defer $30 million of his $240 million contract.
- Deferrals help teams reduce luxury tax payments and have more funds to enhance rosters.
- Deferred payments are not taxed in some states if players do not work there when they receive the money.
