Los Angeles Dodgers
Hall of Famer
Edwin Díaz contract details, Dodgers payroll, draft pick loss & more
Source: https://www.truebluela.com/dodgers-...-details-dodgers-payroll-draft-pick-loss-more
![]()
The Dodgers finalized their contract for closer Edwin Díaz on Friday, signing the veteran closer for three years and $69 million. At $23 million per year, Díaz has the largest reliever contract by average annual value in baseball history, breaking his own record.
Much like several Dodgers contracts in recent years, Díaz has deferred money in his deal. In each year of the contract, $4.5 million of Díaz’s salary is deferred on the following schedule, per Ronald Blum at Associated Press: “Díaz’s deferred money is payable in 10 equal installments each July 1. The 2026 money is due from 2036-45, the 2027 money from 2037-46 and the 2028 money from 2038-47.”
The deferred salaries reduce the average annual value for competitive balance tax purposes from $23 million to roughly $21.1 million, per Joel Sherman of the New York Post.
Díaz gets a signing bonus of $9 million, and the following salaries, per:
2026: $14 million ($4.5 million deferred)
2027: $23 million ($4.5 million deferred)
2028: $23 million ($4.5 million deferred)
There’s also a conditional option (somewhat similar to Blake Treinen’s 2024), per Blum at AP:
Los Angeles has a $6.5 million conditional team option for 2029 with no buyout. The option could be exercised if he has a specified injury through the end of the 2028 season and he does not end the season or postseason healthy, or if he has a specified surgery.
If the conditional option is exercised, he could earn $2.5 million in performance bonuses for 2029 based on games finished: $750,000 each for 45 and 50 games and $1 million for 55.Record setter
Díaz’s last two contracts are the top two contracts for a reliever by average annual value. His five-year, $102 million deal with the Mets also set a record for most guaranteed money for a reliever in one contract. After earning $64 million in the first three years in New York, Díaz in November opted out of the final two years and $38 million of the deal, and based on his new deal was right to do so.
Highest average annual value by a reliever
Edwin Díaz, Dodgers (2026-28), $23 million per year
Edwin Díaz, Mets (2023-27), $21.4 million
Josh Hader, Astros (2024-28), $19 million
Liam Hendricks, White Sox (2021-23), $18 million
Tanner Scott, Dodgers (2025-28), $18 million
Other costs of the deal
Because Díaz rejected a qualifying offer from the Mets, the Dodgers for signing him will forfeit their second- and fifth-highest draft pick in 2026, and will have their 2026 international bonus pool reduced by $1 million.
This was a similar situation for Dodgers drafts in both 2021 (after signing Trevor Bauer) and 2022 (after signing Freddie Freeman). The 2022 draft pick loss was offset slightly by receiving a compensatory pick after the fourth round for losing Corey Seager in free agency.
The Dodgers will also see their top draft pick in 2026 drop 10 spots for exceeding the third competitive balance tax payroll threshold of $281 million for 2025, which was also the case in the 2023 and 2025 drafts. The final payroll numbers aren’t out yet, but the Dodgers final total will be well beyond the fourth and highest threshold ($301 million) as well, and they will break their own record for competitive balance tax paid in one season.
Source: https://www.truebluela.com/dodgers-...-details-dodgers-payroll-draft-pick-loss-more