Dylan Cease Contract Terms Reported

On December 2, the Toronto Blue Jays announced that their seven-year, $210 million contract with Dylan Cease had been finalized. Today on X, the New York Post's Jon Heyman reported the financial structure of the deal.

When the Cease deal was first reported, pending the results of a physical, it was widely believed that the contract included deferrals. According to Heyman and others, the total amount deferred will be $64 million. The salary to be paid from 2026-2032 is $123 million, plus a $23 million signing bonus. Also, the contract contains a limited no-trade clause. The timing of the deferred payments Toronto will make to Cease was not reported. 

The Athletic's Ken Rosenthal reported that the AAV of the deal was close to $27 million ($189 million divided by seven). That would make the present value of the deferrals for Competitive Balance Tax (“CBT”) purposes approximately $43 million ($189 million less $146 million in salary and bonus).

It should be noted that under the CBA, teams must fund a deferral by the second July 1 following the season in which the deferral was earned. In other words, Toronto would have to fund the $10 million deferral for 2026 by July 1, 2028. The amount funded is the present value of the deferred amount using a 5% discount rate. A rough estimate is that Toronto's first funding payment will be approximately $7.5 million.

From the team’s perspective, the primary advantage of deferrals is the reduction of the AAV used for CBT purposes. Given that Toronto pays the CBT, every little bit helps! 

Featured image courtesy of Denis Poroy, Imagn Images.