The Los Angeles Dodgers had a busy offseason. They signed Shohei Ohtani to a historic deal worth $700 million, and their 12-year, $325 million contract for Yoshinobu Yamamoto — a record for a pitcher — put the team over $1 billion in free agent contracts. This staggering amount showcases their commitment to building a championship-caliber team.
This MLB season is officially underway, but the Dodgers aren't done spending. Their recent acquisitions demonstrate a clear strategy to enhance their roster and ensure competitive play. With such significant investments, fans and analysts alike are eager to see how these moves will impact the team's performance in the upcoming season.
Strategic Contracts and Financial Implications
The Dodgers and catcher Will Smith agreed to a ten-year, $140 million contract. Smith, who just turned 29 years old, should remain in Los Angeles for the rest of his career — and he’ll be paid until well after he retires. This long-term commitment indicates the team's belief in Smith's potential and value to their lineup.
Smith's new deal includes a $30 million signing bonus. He’ll receive $15 million of that bonus in November 2024 and the other $15 million in January 2025. The majority of his contract ($90 million) will be paid out over the next ten seasons, though a portion of it will be deferred, allowing the team to manage their payroll effectively.
Deferred Payments and Future Earnings
From 2034 to 2043, Smith will get $5 million per season. That money won’t accrue any interest, but it’s yet another big-money, long-term deal on the books for the Dodgers. Beyond Ohtani and Yamamoto, the Dodgers also have Mookie Betts on a $365 million contract that expires after the 2032 season.
Like Smith, Ohtani will continue earning money long after his deal technically ends. Most of his money is deferred; he’ll get $2 million per season for the next ten years, with the remaining $680 million of his contract coming from 2034 to 2043. This structure allows the Dodgers to remain flexible in their financial management while rewarding their key players.
Building a Competitive Lineup
Smith, who was drafted in 2016, reached his first All-Star team last season, and the Dodgers expect him to take another big leap this year. He’ll continue to be a threat in the lineup alongside Betts and Freddie Freeman, with Ohtani adding another impressive bat to the roster. This trio of players promises to deliver exciting performances for fans this season.
Both of these contracts are designed to give the Dodgers more financial flexibility for the short-term. By owing less money to some players over the next few seasons, the team has room to offer big deals to other players. And they clearly aren’t shy about spending, which raises expectations for their success this season.
Long-Term Goals vs. Short-Term Success
Will it turn into another title? The Dodgers have been perennial contenders but have only won one championship since 1988, which happened during the COVID-19-shortened 2020 season. The pressure is on to convert these investments into tangible results on the field.
Yet the Dodgers are once again going all in. If they win the World Series — or multiple championships — the investment will be well worth it. Otherwise, it’ll be another expensive disappointment, and the team will need to reevaluate its strategies moving forward.
Key Takeaways
What You Will Learn
- The Dodgers' offseason spending has surpassed $1 billion, signaling their intent to compete.
- Long-term contracts for players like Will Smith reflect a strategy focused on future success.
- Deferred payment structures allow the team to manage payroll while rewarding top players.
- The team's investments raise expectations for championship success, putting pressure on management and players alike.
