Part 2/6:
Deferred money has been a significant point of discussion among fans and analysts. Critics often highlight how deferring payments can diminish a player’s present value, contrasting with a signing bonus that provides immediate financial benefits. The Dodgers seem to favor the latter approach—making substantial upfront payments, as evidenced by Blake Snell’s recent contract, which included $50 million upfront.
The strategic use of signing bonuses ensures that players receive a sizable amount immediately, which is particularly attractive to those living in states with no income tax, like Florida or Washington. As both players and teams navigate these financial waters, understanding the nuances—like how state taxes can impact a player’s earnings—becomes essential.