Dodgers: One Interesting Detail Emerges With Freddie Freeman’s Contract
The Dodgers were able to pry Freddie Freeman away from the Braves in free agency. But as it turns out, the Braves might have driven him there with their unwillingness to communicate. Freeman spoke openly about the process during his introductory press conference at Camelback Ranch yesterday.
But the Dodgers did offer him that lucrative 6th year as a part of the deal. It was clear Freddie was searching for that, and he got it with Los Angeles. The contract is set to pay out $162 million and will likely keep Freddie here for most of the remainder of his career.
That contract is not nearly as straightforward as originally thought though. According to The LA Times’ Jack Harris, that contract will include a whopping $57 million in deferred payments. Those payments will come without interest and will be paid out from 2028 all the way through 2040.
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Interestingly enough, that will change the current-day value of Freeman’s contract. That comes out to approximately $148.2 million, according to the Player’s Union. For competitive balance tax purposes, that contract value does not change. The Dodgers will still take a $27 million a year hit towards the CBT.
So while it doesn’t necessarily change anything for the Dodgers, it could have long-term implications. That will either play up massively in terms of having the money, or it could slow them down in those years that they are paying him out.
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It looks like half of your story got cut out! Does that affect the annual salary value as it counts towards the luxury tax? That amount of money in the future is easier to pay because of inflation. Are there any opt outs?
What about state income tax? GA is 6.55% lower than CA (5.75% Vs. 12.3%).