Gregory Bull/Associated Press
The Dodgers announced Betts signed a 12-year contract extension Wednesday.
Per ESPN’s Jeff Passan, Betts’ $365 million deal includes a $65 million signing bonus and will keep him with the Dodgers through the 2032 season.
Passan noted the deal will be worth a total of $392 million over 13 years when combined with the $27 million Betts is owed in 2020.
When the Dodgers acquired Betts from the Boston Red Sox in February, there was no guarantee their partnership would extend beyond 2020. He was set to become a free agent after this season at the age of 28.
Richest MLB Contracts by Total Value
1. Mike Trout, Los Angeles Angels (12 years, $426.5 million)
2. Mookie Betts, Los Angeles Dodgers (13 years, $392 million)
3. Bryce Harper, Philadelphia Phillies (13 years, $330 million)
5. Gerrit Cole, New York Yankees (nine years, $324 million)
6. Manny Machado, San Diego Padres (10 years, $300 million)
Since Trout’s contract was technically a 10-year, $360 million extension that goes into effect after the final two years of his previous deal, Betts’ extension with the Dodgers is the largest in MLB history.
By average annual salary, the Dodgers are getting Betts at a reasonable rate that should benefit them in the future. The four-time All-Star’s $30.15 million per season ranks 11th in MLB.
Richest MLB Contracts by Average Annual Salary
1. Gerrit Cole, New York Yankees ($36 million)
2. Mike Trout, Los Angeles Angels ($35.5 million)
T3. Stephen Strasburg, Washington Nationals ($35 million)
T3. Anthony Rendon, Los Angeles Angels ($35 million)
6. Justin Verlander, Houston Astros ($33 million)
7. Nolan Arenado, Colorado Rockies ($32.5 million)
T8. Miguel Cabrera, Detroit Tigers ($31 million)
T8. David Price, Los Angeles Dodgers ($31 million)
T8. Clayton Kershaw, Los Angeles Dodgers ($31 million)
11. Mookie Betts, Los Angeles Dodgers ($30.15 million)
T12. Manny Machado, San Diego Padres ($30 million)
T12. Max Scherzer, Washington Nationals ($30 million)
It’s notable that the Dodgers negotiated a deal for an affordable average salary because of the competitive-balance tax implications. The tax is determined by the annual value of player contracts, with teams forced to pay a certain percentage depending on how many years they go over the set value and if they exceed it by a certain amount in a given season.
For example, the Boston Red Sox were one of three teams that exceeded the $206 million payroll tax in 2019.
Per Jeff Todd of MLB Trade Rumors, Boston’s estimated payroll of $240 million resulted in a tax payment of around $12 million.
The Dodgers have been the envy of MLB in recent years because they have as much money available as any team, but most of their best players have been making low salaries in their pre-arbitration years.
Corey Seager has one more year of arbitration left after this season. Walker Buehler will be arbitration-eligible for the first time in 2021.
The bill for the Dodgers is due soon if they want to keep this core together. Betts was able to help the organization out with his contract by not taking up a significant portion of the competitive-balance tax that it will need in order to re-sign most of those players.
Contract information via Spotrac unless otherwise indicated.