Chris Davis got a $161 million deal for the Orioles over seven years. However, Davis’ new deal contains $42 million in deferrals which means the Orioles will be paying him long after he is retired.
Davis, 29, will receive payments from the Orioles for the next 22 years though interest will not be any accrued interest on the $42 million of deferred money.
According to ESPN’s Buster Onley, Davis will earn $17 million from 2016-2022 and then $3.5 million from 2023-2032 before that number drops to $1.4 million a year from 2033-2037.
Chris Davis contract structure: $17m annual salary 2016-2022. Annual payments $3.5m 2023-32, then $1.4m 2033-37. No interest on deferrals.
— Buster Olney (@Buster_ESPN) January 16, 2016
The deal helps the Orioles as they are able to kick some of Davis’ deal down the road to give themselves salary relief. For Davis it may not be all bad either as it does ensure financial security for years to come.
Salary deferrals are rare in baseball but this one has nothing on the one given to Bobby Bonilla by the Mets. Owed $5.9 million, Bonilla was released by the Mets in 2000 as part of his release payments to Bonilla were deferred for a decade while collecting interest. The Mets began paying Bonilla $1.19 million in 2011 and will do so until 2035 for a total of $29.8 million. The Mets accepted the deal largely because of their connects to Bernie Madoff as they assumed a 10% return would greatly outweigh the 8% they would end up paying Bonilla.