After Blake Snell deal, hate the Dodgers if you must. But they had help building evil empire.
Disliking the Los Angeles Dodgers is becoming trendy, if it isn’t already.
There’s a growing frustration over the wealthy getting wealthier and concerns about the Major League Baseball environment, where a few teams thrive on local TV deals and substantial private investments, echoing Bud Selig’s biggest fears, despite a varied list of World Series champions over the past 25 years.
Some of these worries may hold some truth.
Following the Dodgers’ latest big move – a five-year contract worth $182 million for left-handed pitcher Blake Snell, who sought a stable home last offseason but faced rejection – it’s crucial to examine who is contributing to the construction of this ambitious franchise out west.
First, let’s look at the Boston Red Sox.
Just two years after securing their fourth World Series title since 2004, the Red Sox unexpectedly decided to emulate the Tampa Bay model. In February 2020, they essentially gave the Dodgers Mookie Betts in exchange for three players who barely made an impact in Boston.
Betts quickly realized after one spring training that he wanted to commit to Los Angeles for twelve years, all tied to a $365 million contract that is significantly deferred, making its present value less than $300 million – about what it likely would have cost Boston to keep him.
Next on the list are the Atlanta Braves, who toasted their 2021 World Series win by releasing Freddie Freeman, then traded valuable prospects for Matt Olson, extending him on a $168 million contract, essentially shutting the door on a player who was deeply emotional about wanting to stay.
The Dodgers faced little opposition in offering Freeman a competitive six-year, $162 million contract with deferrals. Now, Freddie is as much a part of Dodger history as Kirk Gibson and a $30 michelada.
We shouldn’t overlook the San Francisco Giants and all the teams that pursued Snell last offseason, only for the former National League Cy Young Award winner to languish on the market until March, finally settling for a two-year agreement at $32 million per season, with an option to opt out after one year.
What transpired next was all too predictable: Snell was hastily rushed through spring training, got injured, the Giants slipped out of contention, and Snell delivered one of the most remarkable second halves for a starting pitcher in recent years, just in time for free agency.
Ultimately, everything turned out well for Snell, the Dodgers, and his powerful agent Scott Boras.
With his Dodgers contract combined with his year in San Francisco, Snell ends up earning six years and $214 million, showcasing a clever maneuver by player and agent to enhance his market value.
However, the reality remains: The Giants, Red Sox, Yankees – numerous teams could have claimed Snell last winter, likely for that financial range or even less. However, they opted not to invest, paving the way for Randy Newman to add another verse to his song, I Love L.A.
Austerity Boulevard? We love it!
True, none of this is our money, and it’s somewhat unsettling to cheer for the Guggenheim group, the Dodgers’ owners, as they spend every dime to acquire top talent. Soon, they will have seven players under nine-figure contracts – it’s a bit crazy, for sure.
Nevertheless, the fundamentals are simple enough that they go beyond introductory economic principles.
Success breeds success. To profit, one must invest.
Destinations are made through deliberate actions – in this case, the objective to compete and develop a strong team.
The most astonishing aspect of the Dodgers’ recent investment of over a billion dollars – less than a year ago! – wasn’t merely that they secured contracts with superstars Shohei Ohtani and the exceptional Yoshinobu Yamamoto worth $700 million and $325 million, respectively, setting the stage for a potential championship run.
No, the truly surprising part was how effortless it seemed.
Once Ohtani hit the open market after a challenging six-year stint in Anaheim, it felt like there was no alternative, regardless of Toronto’s attempt to sway him. And with Ohtani signed, it was clear where Yamamoto would find the most comfort, financial security, and a shot at a championship.
Boston? (Cue the laughter).
Come January, we may see this theme repeat itself. Rōki Sasaki, the next big Japanese pitching sensation, is set to enter Major League Baseball, and almost every team has a shot at him. Like Ohtani, he’s coming in before turning 25 and will negotiate under the constraints of a team’s rigorous international signing rules — meaning he’ll start with a minimum salary for the first three years.
Guess where he’s expected to land? If it happens, financial factors will play a minimal role in the decision.
Interestingly, just five years ago, it was the Dodgers’ fans lamenting their front office and ownership for their approach.
The organization has shown a reluctance to fully commit to a significant title. While they have established a solid foundation that has led to twelve straight playoff appearances, the focus on “resetting the luxury tax penalty” and “slightly dipping beneath the threshold” has remained a priority for club president Andrew Friedman.
Then, Betts became an unexpected asset.
Fast forward five years, and their revenue streams show no signs of slowing down. The Dodgers are famously earning tens of millions more from Ohtani than they actually pay him, largely due to numerous sponsorship deals from Japan and Ohtani’s agreement to defer a good portion of his salary.
They operate in the largest ballpark in Major League Baseball, and the demand is so high that, for the foreseeable future, they’re able to attract more than 50,000 fans on a regular weeknight game against teams like the Diamondbacks in April. Their lucrative $8.35 billion television contract continues until the middle of the next decade.
On the other hand, the Giants and Red Sox—who have collectively won seven World Series in this millennium—are just beginning to take action. After over five years of tight budgets and minimal spending, they discovered that their fans despise this approach, they’re struggling on the field, and it’s becoming increasingly difficult to compete against the powerful teams out west.
Now, they’re trying to make changes, with the Giants missing out on major free agents while resembling a struggling batter swinging at an elusive curveball. Meanwhile, the Red Sox are now focused on acquiring Juan Soto, suddenly eager to participate after years of inactivity during major bidding wars while their owners managed their other sports interests.
However, creating a sought-after location overnight isn’t an easy task, is it?
Prepare for complaints once the Dodgers initiate their next anticipated spending spree, whether it stems from their financial capabilities or a player’s choice to pursue meaningful opportunities rather than joining a struggling team.
Argue all you want. But remember that the atmosphere in L.A. is exceptional, and it wasn’t simply purchased.