Los Angeles Dodgers: Here's How Kyle Tucker's Deferred Contract Works

Well, it happened again.

The First Order — sorry, the Los Angeles Dodgers — reportedly agreed to a four-year, $240 million deal with star outfielder Kyle Tucker on Thursday night, a move that shoots the Dodgers' 2026 payroll north of $400 million. What makes the contract layered, though, is that it includes deferrals.

Here are the details of how Tucker's contract is structured.

MLB teams have the ability to defer part of a contract, should the player agree to the terms, which means that a player can receive a portion of the money beyond the duration of the deal. For example, a player could agree to a deal that sees them receive $1 million per year for five years after their contract expires.

Tucker has an opt-out in his contract after Years 2 and 3 of the deal and a $64 million signing bonus.

Of the $240 million, $30 million is deferred. Given the deferrals, the average annual salary on Tucker's contract is an MLB-record $57.1 million, compared to $60 million had it been a traditional contract, per ESPN. This also lessens the Dodgers' luxury tax hit.

Since Tucker was offered — and rejected — a qualifying offer from the Chicago Cubs, whom he played for last season, the Dodgers surrendered their third- and sixth-highest selections in the 2026 MLB Draft to sign him.

Earlier this offseason, the Dodgers signed former New York Mets closer Edwin Diaz, which came at the expense of losing their second- and fifth-highest selections in the 2026 MLB Draft and $1 million in international bonus pool money since the right-handed reliever was extended a qualifying offer. 

Tucker spent the first seven seasons of his MLB career with the Houston Astros (2018-24) before being traded to the Cubs following the 2024 MLB offseason.

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