Dylan Cease's contract with Toronto Blue Jays has interesting wrinkle

Not all of Dylan Cease's $210 million deal with the Toronto Blue Jays will go against their salary cap.

The Blue Jays had their first big get of the offseason last week, signing starting pitcher Dylan Cease to a seven-year deal. With the signing, they project to have one of the best starting rotations in all of the MLB next season, which was bolstered even further with the signing of Cody Ponce on Tuesday.

That said, landing one of the best starting pitchers on the free-agent market in Cease didn't come cheap, though thankfully, recent details of the contract won't have as big of a financial impact as initially thought.

Dylan Cease’s $210m, 7-yr deal with the Blue Jays includes $64m in deferrals that reduce present value to $184.63m, as calculated by players union.

Signing bonus: $23m

2026: $22m, $10m deferred
2027: $30m, $9m deferred
2028: $29m, $9m deferred
2029: $28m, $9m deferred
2030:…

— Shi Davidi (@ShiDavidi) December 3, 2025

Cease's contract includes a total of $64 million in deferrals, meaning that the Jays won't have the entire $210 million value impacting their luxury tax. Those deferrals reduce the present value of the contract to $184.63 million, saving the Jays more than $25 million in total.

Any team that goes over the MLB's luxury tax must pay a tax on the amount exceeding the threshold, with the rate increasing based on how many consecutive years they have been over the limit. Penalties can also include forfeiting draft picks if a team goes well over the maximum allowable. 

The Jays finished the 2025 season roughly $39 million over the luxury tax, but were below it in 2024 thanks to moving out several contracts at the trade deadline. 

Given that the Jays are still looking to improve in several areas, including their bullpen, while also hoping to sign another bat such as Bo Bichette or Kyle Tucker, they will undoubtedly be over the luxury tax in 2026. That said, these deferrals in Cease's deal will help keep that number lower than initially thought.