LOS ANGELES — Edwin Diaz’s Dodgers Contract Pushes Deferred Payments Past $1 Billion

Edwin Diaz, the three-time All-Star closer, has signed a deal with the Los Angeles Dodgers that will pay him $69 million, but not all at once — he will not receive the full amount until 2047, thanks to a structured deferred payment plan. Diaz’s contract, combined with existing deferred obligations for other players, raises the Dodgers’ total long-term financial commitments to more than $1.06 billion, spanning nine players.

The three-year agreement, announced Friday, includes a $9 million signing bonus payable on February 1. Diaz’s base salary is set at $14 million for 2026 and $23 million each for 2027 and 2028, with the Dodgers deferring $4.5 million annually from those salaries.

Under the deferred payment structure, the money is paid out in 10 equal installments each July 1. Specifically:

• The 2026 salary is payable from 2036–2045.

• The 2027 salary is payable from 2037–2046.

• The 2028 salary is payable from 2038–2047.

This plan allows the Dodgers to manage immediate payroll flexibility while spreading out long-term obligations over decades. Their highest annual payment due is projected at $102.3 million, scheduled for both 2038 and 2039, highlighting the scale of their deferred salary commitments.

Conditional Team Option and Performance Bonuses

The Dodgers also have a $6.5 million conditional team option for 2029 with no buyout. The option is structured to protect the team in the event of injury or surgery. If exercised, Diaz could also earn up to $2.5 million in performance bonuses for games finished:

• $750,000 for 45 games

• $750,000 for 50 games

• $1 million for 55 games

Additionally, Diaz will receive perks such as a hotel suite on team trips and has agreed to contribute 1% of his income to charitable causes, reflecting his personal commitment to philanthropy.

Deferred Payments and the Dodgers’ Roster

Diaz’s deal adds to a growing list of deferred contracts the Dodgers are carrying:

• Shohei Ohtani: $680 million from 2034–2043

• Mookie Betts: $115 million in salaries from 2033–2044, plus $5 million of his signing bonus payable from 2033–2035

• Blake Snell: $66 million from 2035–2046

• Freddie Freeman: $57 million from 2028–2040

• Will Smith: $50 million from 2034–2043

• Tommy Edman: $25 million from 2037–2044

• Tanner Scott: $21 million from 2035–2046

• Teoscar Hernandez: $32 million from 2030–2039

The deferred payment system is part of the Dodgers’ broader strategy to manage payroll while maintaining a roster of elite talent, particularly as the bullpen was identified as a weakness this past season.

Diaz’s On-Field Performance

A dominant closer, Diaz turned 32 on March 22. Last season with the Mets, he recorded 28 saves in 31 opportunities, posted a 6–3 record, and had a 1.63 ERA over 66 1/3 innings, striking out 98 batters. Despite his stellar individual performance, the Mets failed to reach the playoffs even after spending the second-highest payroll in the league behind the Dodgers.

Over nine seasons with Seattle (2016–2018) and New York, Diaz has accumulated 253 saves in 294 chances, cementing his status as one of the elite closers of his generation. He previously signed a $102 million, five-year contract with the Mets after the 2022 season, which included deferred money payable through 2042. In joining the Dodgers, he gave up $38 million he would have been owed in the final two years with the Mets, demonstrating his commitment to a new chapter in Los Angeles.

Implications for the Dodgers

Diaz’s signing underscores the Dodgers’ aggressive approach to bolstering their bullpen, one of the areas identified as needing improvement. By structuring the contract with deferred payments, the team can maintain immediate competitive flexibility while keeping future liabilities manageable over decades. The deal also reflects the modern MLB trend of using deferred salaries and creative contract structures to acquire elite talent without immediately exceeding luxury tax thresholds.

For Diaz, the move represents an opportunity to join a perennial contender and contribute to a team poised for postseason success, while also ensuring long-term financial security through the deferred payment schedule. Fans and analysts alike will be watching closely to see how Diaz’s presence impacts the Dodgers’ bullpen performance and overall championship aspirations.