MLB trade deadline cash considerations explained: How money changes blockbuster deals

Not every Major League Baseball trade is as simple as swapping players, sending out a press release, and arranging the flights. During and after the season, you’ll frequently see terms like “cash considerations” or “player to be named later” mentioned in the official trade announcement. 

Don’t feel bad if you’re not overly familiar with what those phrases mean. We’re here to help! And we’ve even tried to use specific examples where appropriate.

Here is everything that you must know about cash consideration trades ahead of the 2026 MLB trade deadline. 

What are cash considerations in MLB trades?

Cash considerations are exactly what they sound like. Rather than trade a player, teams will sometimes instead send money. 

And no, there isn’t some scrawny intern pulling into the ballpark with literal bags of cash. It’s just a turn of phrase. Although I wouldn’t be shocked if “cash considerations” may involve picking up the tab the next time the two executives are together. 

How do cash considerations work at the MLB trade deadline?

Just because there’s no Brink’s truck doesn’t mean that the cash considerations process is overly complicated. For the sake of example, let’s say that the New York Yankees decided that they would trade veteran designated hitter Giancarlo Stanton, who is owed $15 million next year and has a $15 million team option for 2028 (though the option contains a $10 million buyout).

Sticking with that example, let’s say that the Mariners agreed to acquire Stanton, but only if the Yankees ate some of the money. Cash considerations would be included because Seattle isn’t taking on the rest of Stanton’s contract.

Why do MLB teams include cash in trades?

As we just saw with the Stanton example, cash considerations are often used to, for lack of a better phrase, do right by the other team. The Mariners are arguably doing the Yankees a favor by taking on a multi-year contract that Brian Cashman and Hal Steinbrenner no longer want. 

Alternatively, you might see a team trade cash considerations to acquire a player rather than submit a waiver claim. This typically happens when players are designated for assignment. 

Are there limits on cash considerations in MLB trades?

In an instance like the Stanton example, Major League Baseball could not prohibit the Yankees from eating a certain amount of money, whether it’s $2 million or $20 million. That’s a number that the Yankees and Mariners would settle on before submitting the trade for league approval.

However, let’s go back to the scenario where the Yankees acquire a reliever designated for assignment elsewhere. Major League Baseball typically caps the cash considerations in that case to $100,000. 

Recent MLB trade deadline examples of cash considerations

Dating back to the start of last season, here are examples of the three traditional cash consideration trades:

• When the Twins traded shortstop Carlos Correa to the Astros in July 2025, they agreed to absorb part of what remained on his six-year, $200 million contract.
• Earlier this month, the Pirates sent cash considerations to the Orioles for outfielder Johnathan Rodríguez, who’d previously been designated for assignment.
• The Diamondbacks shipped pitchers Shelby Miller and Jordan Montgomery to the Brewers last July for a player to be named later or cash considerations. As of July 2026, neither side had announced whether a player was later involved. 

Cash considerations vs. player to be named later

A player to be named later is exactly what it sounds like. Going back to the Stanton example, perhaps the Yankees would acquire two players now and, at a later point, they would choose one of the Mariners’ low-level prospects to add on. Or, depending on how the trade itself is structured and worded, the Yankees could instead send the Mariners more money down the road. 

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