MLB Commissioner Rob Manfred makes feelings known about deferred deals and limitations of escrow accounts as the ultimate solution - Source: Getty
The LA Dodgers found a way to exploit a loophole in the current CBA agreement, which allows MLB teams to defer payments as much as they want. The franchise owes over a billion in terms of deferred salary.
A major chunk of that pie belongs to three-time MVP Shohei Ohtani, who's supposed to get paid around $68 million each year from 2034-43, as a part of his 10-year, $700 million deal signed in 2023.
MLB Commissioner Rob Manfred addressed the situation during an interview with Chris O'Gorman. Manfred said that they have strengthened the rules from to fund deferred compensation if a team runs into financial difficulties.
"Yeah, deferrals, but you know, deferrals at some point can become problematic," Manfred said (24:38 onwards). "Historically, we did have one franchise, Arizona, that got itself into financial difficulties as a result of excessive deferrals.
