Deferred money MLB contracts: Shohei Ohtani's extraordinary Dodgers deal draws focus to other stars who went the same route

Until very recently, the notion of deferred money MLB contracts was an afterthought for most front offices, fans and players. However, this long-sighted approach has been employed by several players over the years.

On December 9, Shohei Ohtani inked a ten-year deal worth $10 million with the Los Angeles Dodgers. However, mere days later, it was announced that the star's payout would be largely deferred. By taking a $2 million salary, Ohtani will not claim the $680 million balance until after his contract is over.

While the practice may seem strange at first glance, deferred money MLB contracts allow teams to free up cash in the present, while allowing players to reap benefits of their deals for years, or even decades, to come.

Deferred Money MLB contracts: Players who opted to get paid later

Bobby Bonilla

In 1991, outfielder Bobby Bonilla hit .302/.391/.492 with 18 home runs, 100 RBIs, and a league-leading 44 doubles as a member of the Pittsburgh Pirates. As such, the Mets pounced on the 28-year old in free agency, inking him to a five-year, $29 million which was the largest in sports history at the time.

"Steve Phillips says he's finally off the hook for THAT Bobby Bonilla contract" - The Score

After trading Bonilla three years into his deal, the New York Mets traded back for Bonilla in 1998, and still owed some $5.9 million on the deal. Instead of paying him out after he was released in 1999, the Mets opted to pay Bonilla out at eight percent interest starting in 2010. As such, Bonilla gets a cheque for $1.19 million every July 1, and will continue to do so until 2035 in one of the most high profile MLB deferred contracts ever.

Max Scherzer

In 2015, pitcher Max Scherzer signed a seven-year contract worth $210 million with the Washington Nationals. Although the southpaw went on to win consecutive Cy Youngs for the team, as well as the 2019 World Series, Scherzer was traded to the Dodgers in 2021. Under Scherzer's deferred money MLB contracts, the remaining $105 million is paid annually in $15 million deferral payments.

Ken Griffey Jr.

After a decade playing for the Seattle Mariners, Ken Griffey Jr. had amassed seven Silver Sluggers, ten Gold Gloves, and an MVP Award. As he entered free agency, the Cincinnati Reds were quick to snatch him up with a nine-year extension worth $112.5 million.

"People always talk about the Bobby Bonilla contract. The Reds are paying 49-year old Ken Griffey Jr. a salary of $3.5 million this year." - Dayne Young

However, some $57.5 million of the $112.5 million was earmarked to be part of history's deferred money MLB contracts. With four percent interest, Griffey would earn the money back incrementally from 2009 until 2024. For most of the past decade, Griffey has been the highest-paid Reds player, despite leaving the team in 2008.

Manny Ramirez

When the Boston Red Sox traded Manny Ramirez to the Dodgers in 2008, some $32 million of Ramirez' $160 million entitlement remained on his contract. Instead of paying out the Dodgers, the Sox opted to defer, and have committed to paying Ramirez nearly $2 million per season until 2026. Whether or not we will see more deferred money MLB contracts remains to be seen.