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Left-hander Blake Snell and the Dodgers reportedly agreed to a deal a week ago and the club officially announced it on the weekend, but the finer details of the pact are still trickling out. Per Jon Heyman of The New York Post (X link), the $182MM guarantee breaks down as a $52MM signing bonus followed by $26MM salaries in each of the five years of the deal, though with $13.2MM deferred annually without interest. There’s a $5MM assignment bonus if Snell is traded. Additionally, there’s a $10MM club option for 2030 under certain conditions: if Snell hasn’t been assigned to another club and has 90 or more days in a row on the injured list due to specific injury.

Many of these details came out in the initial reporting, including the guarantee, the signing bonus, the assignment bonus and that there were significant deferrals. However, the deferrals are slightly higher than initially thought. The numbers reported last week were $13MM in annual deferrals for a total of $65MM, but we now know that it’s slightly higher than that, with the $13.2MM annual figure actually getting the total number of deferrals to $66MM. Per Bob Nightengale of USA Today (X link), the MLBPA calculates the net present value of the deal at $150.336MM.

But the conditional option is the most significant new development today, as there was no prior reporting about Snell’s contract extending into the 2030 season in any way. Now it’s known that the Dodgers could potentially hold onto Snell for a sixth year, though only under certain circumstances.

Given the conditions, it seems it gives the Dodgers a bit of an insurance policy in the event Snell ends up with a significant injury over the course of the deal. Presumably, the specific injury would involve something related to his pitching elbow, whether that’s Tommy John surgery or some internal brace alternative. Such surgeries have become increasingly common in baseball in recent decades but still require pitchers to spend upwards of a year recovering.

Assuming that is the specific injury covered in the contract, the Dodgers would have the choice of keeping Snell around for an extra year, compensating them in a way for the lost year. Snell will be 37 years old by the time 2030 rolls around, so it’s anyone’s guess what kind of form he will be in at that point, especially if there’s a notable injury along the way. But $10MM is already not a lot of money for a starting pitcher.

Last winter, veteran back-end guys like Kyle Gibson and Lance Lynn got $13MM and $11MM guarantees on one-year deals, respectively. Wade Miley and Alex Wood were not far behind at $8.5MM. Inflation generally pushes salaries up over time, so those kinds of deals might creep up a bit between now and 2030.

It’s also possible Snell’s future talent level is above where those guys are now, given that he’s a two-time Cy Young winner and has had a more impressive peak than anyone in that group. Not all pitchers can maintain that kind of performance into their late 30s, but those who do are handsomely rewarded. Max Scherzer, Justin Verlander and Zack Wheeler were each recently able to secure salaries of $42MM or higher for deals that covered their late 30s or early 40s, so Snell at $10MM could be a massive bargain if he continues to pitch well over the course of the deal.

The fact that the option is also conditional on Snell not being assigned to another club is also interesting, as it could reduce the chances of Snell being traded while hurt. Robbie Ray underwent Tommy John surgery while with the Mariners and found himself traded to the Giants before he recovered from that procedure. If Snell ends up missing some time and unlocking that option for the Dodgers, they might be more inclined to keep him and take advantage of that option. All of this is moot for now, but it could become relevant down the line, depending on how things play out in the next five years.

The Dodgers continue to load up, as they announced their five-year contract with left-hander Blake Snell Saturday afternoon. The deal, which is pending a physical, comes with a $182MM guarantee but reportedly includes $65MM in deferrals ($13MM per year) that’ll reduce the net present value to the $160-165MM range. Snell, a client of the Boras Corporation, receives a $52MM signing bonus and limited no-trade protection, while the deal includes a $5MM assignment bonus in the event of a trade. The contract does not contain any opt-out provisions and covers Snell’s age 32-36 seasons.

It’s the offseason’s biggest move to date and represents a much quicker resolution than Snell’s previous trip to the market. The star southpaw was coming off a Cy Young campaign last winter. The long-term deal he sought didn’t materialize, leading to an extended free agent stay. Snell went unsigned into March before joining the Giants on a two-year deal that guaranteed him $62MM and, more importantly, allowed him to opt out after the first season.

Snell had a dismal start to the season. He allowed more than a run per inning over his first six appearances. He landed on the injured list twice in the first three months while battling groin discomfort. As recently as the middle of June, it looked like a near-lock that Snell would bypass the chance to return to free agency.

That all changed as soon as he returned from his second IL stint. By the end of the season, there was no doubt he’d pass on the remaining $30MM on his pact with San Francisco. Snell was the best pitcher in baseball down the stretch. Over his final 14 starts, he turned in a 1.23 earned run average while holding opponents to a .123/.211/.171 batting line that looked like a throwback to the days when pitchers hit.

Snell struck out more than 38% of batters faced over that run. He had five double-digit strikeout performances and fanned at least eight hitters in 10 outings. Snell had the best two-start run of his career right around the trade deadline. He struck out 15 over six scoreless innings against the Rockies on July 27 before no-hitting the Reds with 11 punchouts on August 2.

The overall numbers were still weighed down to some extent by his terrible first two months. He wrapped up the year with a 3.12 ERA and a 34.7% strikeout rate over 104 innings spanning 20 starts. That’s a strong season but didn’t earn him a single Cy Young vote. The overall platform year was less impressive than the 180 innings of 2.25 ERA ball he posted during his ’23 campaign in San Diego. Snell finished the season looking every bit as dominant as he’d been during his Cy Young years, though.

It seems the Dodgers are attributing the first two months to some combination of an abbreviated Spring Training and the injuries. While this year was the most extreme example, Snell has been a slow starter throughout his career. He has a 3.95 ERA and 28.4% strikeout rate in the first half of his nine big league seasons. The ERA plummets to 2.39 while he has raised his strikeout percentage above 32% after the All-Star Break.

The main knock has been his lack of consistent durability. Snell has reached the 180-inning threshold on two occasions — his 2018 Cy Young season with the Rays and his ’23 award-winning campaign. Outside those seasons, Snell has topped out in the 125-130 inning range.

That’s not a concern for the Dodgers, who have shown they’re far more interested in chasing upside than bulk. Los Angeles acquired and extended Tyler Glasnow last offseason even though he’d never topped 120 MLB innings in a season. The Dodgers will give Shohei Ohtani another chance to pitch coming off his second significant elbow surgery. They’re almost certainly going to reunite with Clayton Kershaw. They’ve graduated a number of talented pitchers from the farm system but seen a lot of them go down to injuries.

It’s an approach geared heavily toward the postseason. The Dodgers prioritize pitchers who profile as potential Game 1 starters. They’re very willing to assume injury risk while chasing that ceiling. That left them woefully short on starting pitching in 2023, resulting in a sweep at the hands of the Diamondbacks in the Division Series. The injuries mounted again this fall, but they had just enough in the form of Yoshinobu Yamamoto, Jack Flaherty and Walker Buehler to patch together an October rotation. With a star-studded lineup, that was sufficient to lift their second trophy in five years.

Snell arguably fits that mold as well as any pitcher in baseball. Among pitchers with at least 200 innings over the past two years, only Reynaldo López and Tarik Skubal have a lower ERA than his 2.57 mark. Snell’s 32.7% strikeout rate is second, trailing only Glasnow by a fraction of a percentage point. No one has a higher swinging strike rate.

The Dodgers have four pitchers who could start the first game of a playoff series. Snell, Ohtani, Yamamoto and Glasnow are each capable of providing ace-caliber production on a rate basis. It’s unlikely all four will be healthy come playoff time, but the Dodgers have no shortage of talented options behind them. Kershaw figures to be back in the rotation mix once he re-signs, while Tony Gonsolin, Dustin May and prospect Nick Frasso are returning from major surgeries. Bobby Miller is looking to rebound from a terrible sophomore season after turning in a 3.76 ERA across 22 starts as a rookie. Landon Knack and Justin Wrobleski are capable depth arms.

That’s before considering the possibility of further acquisitions. The Dodgers will surely make a push for NPB ace Roki Sasaki, who’d arguably be the fifth starter if he went to L.A. Even if Sasaki signs elsewhere, the Dodgers could pursue Garrett Crochet on the offseason trade market and/or continue adding starting pitching at the deadline.

Of course, the ability to stockpile this kind of rotation talent is a reflection of the Dodgers’ financial might. Even if other front offices share their general approach to valuing upside over durability, few ownership groups are willing to match L.A.’s spending. The Dodgers had generally shied away from pitching splashes under president of baseball operations Andrew Friedman, but that has changed over the past calendar year. This is their third nine-figure pitching investment since last offseason (fourth including Ohtani). They signed Yamamoto for $325MM and extended Glasnow on a deal that included $110MM in new money.

MLBTR ranked Snell as the #2 starting pitcher in the class and predicted a five-year, $160MM contract. The deal’s actual value lands right around there. The specific NPV won’t be clear until the deferral structure is revealed. The expected $32-33MM luxury tax hit indicates the deal will have a net present value in the $160-165MM range. That’d be the second-biggest luxury tax hit on L.A.’s books, trailing only the approximate $46.1MM CBT number on Ohtani’s heavily deferred $700MM contract.

In any case, the deal is likely to push the Dodgers’ competitive balance tax figure north of $300MM. They’ll almost certainly land in the fourth and final tier of penalization, which begins at $301MM. The Dodgers are subject to the highest tier of escalation penalties for paying the tax in at least three straight seasons. The Snell deal itself will cost the Dodgers something in the range of $25-30MM in taxes by vaulting them from the middle of the second penalization tier to the start of the highest tax bracket. Future spending will be taxed at the maximum 110% clip.

It’s a major commitment but one the Dodgers are well-positioned to make. They’re coming off the revenue bump associated with a World Series win. More importantly, the structure of Ohtani’s contract allows the Dodgers to continue stockpiling talent. While the Ohtani deal was not an end-around the luxury tax, there’s a huge benefit from a raw payroll perspective. Paying the NL MVP a $2MM salary for the next nine seasons is a big reason they’re able to continue taking on huge money in the short term.

Snell slotted alongside Corbin Burnes and ahead of Max Fried as the top starters in this year’s class. In addition to fitting the Dodgers’ general preference for high-ceiling arms, Snell came with the benefit of not costing draft compensation. He’s the only of the top three starters who wasn’t issued a qualifying offer. Snell had received the QO during his first free agent trip, so the Giants could not make the offer this time around. Burnes and Fried each rejected a qualifying offer and would’ve cost the Dodgers their second- and fifth-highest selections in the 2025 draft and $1MM from their ’26 bonus pool for international amateurs.

Burnes and Fried become the clear #1-2 options for the other teams seeking top-flight starting pitching. Mark Feinsand of MLB.com reported this evening that the Red Sox, Yankees and Orioles were also in the Snell bidding. They’ve all been tied to top-of-the-market starting pitchers — Boston especially — and should remain active on that front in the weeks to come.

MLB.com’s Mark Feinsand reported the Dodgers and Snell had a five-year deal, shortly after the pitcher revealed on Instagram that he was joining L.A. Jeff Passan and Jorge Castillo of ESPN first reported the $182MM guarantee. Fabian Ardaya of the Athletic reported that the deal contained deferrals that would drop the net present value to the $32-33MM range annually. Jack Harris of the Los Angeles Times was first with the $52MM signing bonus, while Feinsand had the limited no-trade protection. Jon Morosi of the MLB Network reported the absence of an opt-out clause. Jon Heyman of the New York Post first reported the presence of an assignment bonus, which Harris relayed at $5MM. Heyman first reported the exact breakdown of the deferrals.

Image courtesy of USA Today Sports.