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MLB Salary Cap Could Face Lawsuits Over Deferred Player Contracts

Major League Baseball could face lawsuits if a salary cap voids existing player contracts. The Los Angeles Dodgers have deferred over $1 billion through 2047.

According to the Dayton Daily News, implementing a salary cap in Major League Baseball could trigger lawsuits related to existing multi-year and deferred contracts. The Los Angeles Dodgers deferred a portion of Shohei Ohtani's $700 million contract. The Dodgers have deferred over $1 billion through 2047. These contracts would have to be honoured. Teams cannot unilaterally declare existing contracts void due to a new salary cap. One example is that they could not unilaterally say they do not have to pay Shohei Ohtani the $680 million they deferred.

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