Major League Baseball is unique in that it doesn’t have a set salary cap. Sure, there’s a luxury tax that makes fielding an expensive team even more costly, but unlike in the NBA or NFL, a baseball team can spend as much as it wants. That’s how we end up with moments like the Los Angeles Dodgers signing Shohei Ohtani to a record-setting ten-year, $700 million deal.
The Dodgers have been perennial championship contenders for nearly a decade, so they haven’t been afraid to spend to try and win multiple championships. The team won the World Series during the COVID-shortened 2020 season, the franchise’s first title since 1988. Now, they’ve added Ohtani to an already strong batting lineup.
That lineup is incredibly expensive, however — particularly when looking at the three highest-paid players. Between Ohtani, Mookie Betts, and Freddie Freeman, the Dodgers have more than $1.2 billion committed.
Freddie Freeman (L) and Mookie Betts (Brandon Sloter/Image Of Sport/Getty Images)
This money isn’t all due at once, of course, which gives the Dodgers at least some flexibility in building out the rest of their roster. Ohtani’s deal reportedly includes mostly deferred salary, meaning he’ll earn more in the later part of the contract or perhaps even after the deal ends in 2033.
But they do still owe a lot of money to their stars. After winning the World Series with the Atlanta Braves in 2021, Freeman, 34, signed a six-year, $162 million contract with the Dodgers before the 2022 season. He’ll make $27 million per year over the next four seasons for a total of $108 million.
The Dodgers traded for Betts, 31, in February 2020 before the pandemic shut down the season for several months. The day before play resumed, Betts agreed to a 12-year, $365 million deal to stay with the Dodgers. That was then the second-largest deal in MLB history, and it’s barely half of what Ohtani will earn over the duration of his contract.
Assuming the players remain on the Dodgers for the entirety of their contracts, the team will pay a collective $1.219 billion to Ohtani, Betts, and Freeman.
Even if the Dodgers trade one or more players, we’ve seen plenty of instances of teams paying players to go away. The team may find a bit of financial relief at some point, but it’s going to incur significant costs.
If the Dodgers end up winning another World Series — or multiple championships — the trio will be worth the hefty salary. Winning has a funny way of curing any financial troubles.
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