The Dodgers have locked down Mookie Betts for the long haul, and that’s all anyone really wants to talk about. But lost in the excitement of locking down a generational talent in the number that comes with the deal. We break down the financial aspect of the Mooke Betts deal below.
The first thing to note is that the Dodgers included a $65 million signing bonus for Mookie Betts in the deal. It’s complicated, but that helps for tax purposes in California. The bonus will also help to compensate for a relatively low salary in 2021 and in 2022. Mookie will be paid just $17.5 million during those first two years of the extension.
Another thing to note is that his deal with the Dodgers does NOT include any opt outs. There is also not a no-trade clause in the deal, something that will be very important in the later years of the contract. If Betts is traded, the deferrals in the following years will then be converted to present-day value adjusting for inflation. So if he is traded, Mookie could potentially make even more money down the line.
More on Betts contract with Dodgers, per source: $115M of $365 million is deferred. Deal does not include opt-outs or a no-trade clause. But if Betts is traded, deferrals in subsequent years will be converted into present-day dollars, creating greater financial value.
— Ken Rosenthal (@Ken_Rosenthal) July 22, 2020
The contract also adds roughly $365 million to his already existing deal in 2020. Thus, it makes this the single largest contract extension in MLB history. In total, it appears to be a $392 million deal over the course of 13 years. The annual average comes out to just over $30 million for the Dodgers and Mookie.
We couldn’t be more comfortable to make that bet than on Mookie. Mookie can impact a game at every facet. But what really stood out to us is the work ethic, the burning desire to get better on a daily basis. -Andrew Friedman
Talks between Mookie Betts and the Dodgers front office reportedly began in March, not long after he was acquired from Boston. The world obviously went on pause for a while, but talks picked back up a few weeks ago when baseball resumed. Betts also reportedly had wanted a deal done before Thursday’s Opening game against San Francisco. Andrew Friedman talked about the events leading up to his signing.
The world changed in the middle of it, but our desire to get something done didn’t change…It speaks to the faith we have about things getting back to normal. Go to 12 years, you’ve got nothing but time…
It looks like Dodgers will have Mookie Betts patrolling the outfield at Chavez Ravine for years to come. The financial details are still coming out, so we will update as new information is passed along. Let’s go Dodgers.