The Toronto Blue Jays have signed Anthony Santander to a five-year, $92.5 million contract, but they’re playing it smart with deferred payments, just like the Los Angeles Dodgers. In fact, $61.75 million of that total will be paid out later, which means the present-day value of the deal comes down to about $68.6 million. For luxury tax calculations, the annual average value (AAV) is set at $13.7 million, which is much lower than it would’ve been otherwise, according to Ken Rosenthal of The Athletic.

Here's how the deal is structured, according to Sportnet. Santander will earn $13.5 million in 2025, but $10 million of that is deferred. Also, he gets a $13.5 million signing bonus, with $6.75 million of it pushed down the road. For 2026 and 2027, he’ll make $16.5 million each year, but again, $10 million of those salaries are deferred. In 2028 and 2029, his earnings drop to $14.75 million and $12.75 million, but the deferrals stay at $10 million per year. There’s also a team option for 2030 worth $15 million (or a $5 million buyout), and that’s deferred, too.

Although Santander has the option to opt out after 2027, the Blue Jays can simply avoid that by guaranteeing him an extra $17.5 million across 2028-2030. If that happens, the total contract value jumps to $110 million. He also has some performance bonuses, like $150,000 if he wins MVP and $50,000 for making the All-Star team or winning a Gold Glove.

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By structuring the deal in such a way, it gives the Blue Jays more breathing room under the luxury tax. For 2025, their CBT payroll is expected to be around $254.1 million, which keeps them below the $261 million threshold. That’s about $9 million in savings every year, giving them the flexibility to chase other stars like Pete Alonso or Max Scherzer.

This strategy isn’t new, by the way. The Dodgers have been doing it for a while. The Dodgers signed Shohei Ohtani to a 10-year, $700 million deal in December 2023, deferring $680 million. The Dodgers also deferred $66 million in Blake Snell’s $182 million deal and $115 million in Mookie Betts’ monster $365 million contract.

As far as Anthony Santander is concerned, he will be a worthwhile investment. He hit 44 home runs in 2024, which is the fourth-most by a switch-hitter in MLB history, and drove in 102 runs. He slashed .238/.308/.506 and became the first switch-hitter since 2006 to top 40 homers, which helped the Baltimore Orioles make the playoffs.