I don’t think the Werth contract had deferrals?
And of course it’s AAV that counts against the luxury tax calculations.
Werth did not originally, but they were added to his contract in 2016. Rafael Soriano and Daniel Murphy also had them. Harper's $300 million rejected extension included $100 million of deferrals.
Deferrals aren't bad per se, but no team besides the Dodgers, who are #1 or 2 in revenue, has used them as aggressively as the Nats. Deferring 1/2 of Scherzer's contract, and 1/3rd of both Strasburg contracts has set them up for years of a major cash flow drag. Next year alone they'll have $50 million owed in deferrals, and then they'll have over $40 million through 2027. The deferrals allowed them to reduce the present value of the contracts in the years of service (the luxury tax hit gets discounted by an agreed upon interest rate), but also to smooth cash outflows by not signing big contracts in the "reboot, rebuid, tank, throw the season away" years. In effect, they hamstring the team as much as signing a declining player until he's in his 40s.
From a business standpoint, they're also kind of foolish because they reduce the value of the franchise by diminishing the fanbase in the off years. If there were no deferrals and no tank years, attendance would likely still be 6-7k fans higher per game, ratings higher, which in turn would boost the value of the franchise. On top of that, the dead money of contract deferral liabilities knocks it down another $100-$150 million.