RP Edwin Diaz spurned offers from the Braves and Mets in agreeing to a 3 year, $69 million free agent contract to join the Los Angeles Dodgers.

The deal included a $9M signing bonus, with $18.5M of cash allocated to each of the next 3 seasons. Of that, $4.5M annually ($13.5M total) is deferred from 2036-2047.

2026: $9M salary, $9M signing bonus ($4.5M deferred at $450k each July 1, 2036-2045)
2027: $18.5M salary ($4.5M deferred at $450k each July 1, 2037-2046)
2028: $18.5M salary ($4.5M deferred at $450k each July 1, 2038-2047)

The Dodgers also built in a conditional club option for 2029 if he suffers a specific (undisclosed) injury in 2028 that carries into the 2029 offseason. That option is currently priced at $6.5M (with no buyout) and contains an additional $2.5M of incentives if exercised.

For Diaz, it’s another top of the market reset for the 31-year-old, who opted-out of the final three years of a 5 year, $102 million contract with the Mets this past November. The contract came with $26.5M (25%) deferred, and a $12M signing bonus. Per multiple reports, Diaz was interested in reducing the deferral rate of this most recent contract, which ultimately led to the Dodgers (ironically) winning the bidding war (19.5% deferred).

From an average annual standpoint, Diaz’ $23M figure is the highest in MLB reliever history, surpassing his own previous mark of $20.4M. With the deferred compensation accounted for, Diaz’ CBT figure is reduced to $21.1M over the next three seasons, which represents the 7th highest tax hit on the Dodgers currently.

Diaz now joins Tanner Scott, who signed a 4 year, $72M contract last winter to combine for one of the best back of the bullpen combos in all of baseball.