The Los Angeles Dodgers have been on an unprecedented spending spree that started with signing Shohei Ohtani to a staggering 10-year, $700 million contract in December 2023.

Ohtani’s deal with the Dodgers was an MLB record at the time, and on top of the total value, was jarring in that he chose to defer $680 million in salary. Deferrals are not unique to the Dodgers, nor against rules set forth in the collective bargaining agreement (CBA).

But there is no denying they use the strategy more aggressively than most other teams.

The latest example is with their signing of Kyle Tucker to a four-year, $240 million contract. Tucker chose to sign with the Dodgers despite having a long-term offer from the Toronto Blue Jays and opportunity to join the New York Mets on a similarly-structured deal of fewer years.

“Obviously, I think very highly of this organization. From the top down, from ownership group to the front office, I think it’s a first-class experience with all of that,” Tucker said of his decision to sign with the Dodgers.

“Playing here is exciting. You can see the fanbase really embrace the team, embrace the city, and want to encourage the players to go out there and play at a high level. I think the players kind of speak for themselves with their play on the field and winning multiple World Series championships, especially the last two years. The players kind of speak for themselves in terms of that.”

Understanding Kyle Tucker’s contract

Tucker’s Dodgers contract includes opt-out clauses after the 2027 and 2028 seasons, meaning he could be with the team for as few as two years. He also is receiving a $64 million signing bonus and deferred a total of $30 million in salary.

For MLB’s calculations, deferrals in Tucker’s contract reduces the average annual value from $60 million to $57,195,945.

Moreover, as noted by Bob Nightengale of USA Today, Tucker is only going to receive $1 million in actual salary during the 2026 season, which is half of what the Dodgers are paying Ohtani each year of his contract.

According to Beth Harris and Ronald Blum of the Associated Press, Tucker is due $54 million of his signing bonus by Feb. 15. He then will receive the remaining $10 million on Feb. 1, 2027.

Reaction to Nightengale’s tweet predictably was negative. Factions of other fanbases, along with some MLB owners, have become incredibly frustrated by the Dodgers’ ongoing spending in free agency.

With Tucker’s contract specifically, it is important to understand the Dodgers are paying him a grand total of $55 million this year. Choosing to make the overwhelming majority of that payable in the form of a signing bonus is permitted under the CBA and beneficial to the player for tax purposes.