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Now that the Mookie Betts contract with the Dodgers is official, let’s delve into the specifics of the franchise-record 12-year, $365 million deal.
Betts will get a $65 million signing bonus, per Jorge Castillo of the Los Angeles Times. It’s split up in 15 staggered annual payments every Nov. 1 beginning in 2021, per Ronald Blum of the Associated Press.
Having so much of the contract (17.8 percent) as a bonus is especially relevant because that’s taxable in your home state, as opposed to salaries, which depend on where the games are played. Betts lives in Nashville, and Tennessee has no state income tax.
The contract also includes $115 million in deferrals, per Ken Rosenthal at The Athletic, who notes, “if Betts is traded, deferrals in subsequent years will be converted into present-day dollars, creating greater financial value.”
There aren’t any opt-outs nor a no-trade clause.
The players union values the total contract at roughly $306.7 million after factoring in all of the deferrals, per Rosenthal. For competitive balance tax purposes, that would mean a number around $25.6 million each year of the deal rather than the $30.4 million average annual value.
Those deferrals are paid after the contract is up, every July 1 starting in 2033, and continue through 2044, per the AP.
Here is a breakdown of what Betts will receive annually for the next 24 years.
Mookie Betts contract
| Year | Salary | Salary paid | Amount deferred | Deferred payments | Signing bonus | Total paid |
|---|---|---|---|---|---|---|
| Year | Salary | Salary paid | Amount deferred | Deferred payments | Signing bonus | Total paid |
| 2021 | $17,500,000 | $9,500,000 | $8,000,000 | $5,000,000 | $14,500,000 | |
| 2022 | $17,500,000 | $9,500,000 | $8,000,000 | $5,000,000 | $14,500,000 | |
| 2023 | $20,000,000 | $12,000,000 | $8,000,000 | $5,000,000 | $17,000,000 | |
| 2024 | $25,000,000 | $17,000,000 | $8,000,000 | $5,000,000 | $22,000,000 | |
| 2025 | $25,000,000 | $17,000,000 | $8,000,000 | $5,000,000 | $22,000,000 | |
| 2026 | $25,000,000 | $15,000,000 | $10,000,000 | $5,000,000 | $20,000,000 | |
| 2027 | $25,000,000 | $15,000,000 | $10,000,000 | $5,000,000 | $20,000,000 | |
| 2028 | $30,000,000 | $19,000,000 | $11,000,000 | $5,000,000 | $24,000,000 | |
| 2029 | $30,000,000 | $19,000,000 | $11,000,000 | $5,000,000 | $24,000,000 | |
| 2030 | $30,000,000 | $19,000,000 | $11,000,000 | $5,000,000 | $24,000,000 | |
| 2031 | $27,500,000 | $16,500,000 | $11,000,000 | $5,000,000 | $21,500,000 | |
| 2032 | $27,500,000 | $16,500,000 | $11,000,000 | $5,000,000 | $21,500,000 | |
| 2033 | $8,000,000 | $2,000,000 | $10,000,000 | |||
| 2034 | $8,000,000 | $2,000,000 | $10,000,000 | |||
| 2035 | $8,000,000 | $1,000,000 | $9,000,000 | |||
| 2036 | $8,000,000 | $8,000,000 | ||||
| 2037 | $8,000,000 | $8,000,000 | ||||
| 2038 | $10,000,000 | $10,000,000 | ||||
| 2039 | $10,000,000 | $10,000,000 | ||||
| 2040 | $11,000,000 | $11,000,000 | ||||
| 2041 | $11,000,000 | $11,000,000 | ||||
| 2042 | $11,000,000 | $11,000,000 | ||||
| 2043 | $11,000,000 | $11,000,000 | ||||
| 2044 | $11,000,000 | $11,000,000 | ||||
| Totals | $300,000,000 | $185,000,000 | $115,000,000 | $115,000,000 | $65,000,000 | $365,000,000 |
In addition, Betts will make an annual $100,000 charitable contribution (presumably to the Dodgers Foundation) all 12 seasons of the contract, per Blum at the AP, and will get a hotel suite on road trips.