Here is my crack at it. Yeah, I didn't make the $120M limit, including deferred money, but it was a lot harder than I thought it would be when I started. I think some have commented on other attempts that trades should maybe not be contemplated as part of this exercise, but I went ahead and dealt Ethier, both to save a little money and because I think the team could do just as well without him and he will likely walk as a FA after 2012 anyway. Loney is gone as a non-tender. Kuo would be non-tendered and offerred an NRI due to his elbow injury.

It's late and I'm a little tired, so I hope my math is right. Here is this arm chair GM's team:

Starters:

C     Ellis       $435,000

1B    Fielder    $22,000,000   (6/154m with a 7th year option and $4m buyout)

2B    Prado     $4,500,000

SS   Gordon    $420,000

3B    Uribe       $8,000,000

LF    Willingham   $7,000,000    (3/26m with 4th year option and $2m buyout

CF   Kemp     $12,000,000      (8/170m extension)

RF   Sands    $420,000

Bench:

OF    Gwynn    $1,000,000

OF/1B   Rivera    $4,000,000

IF    Sellers     $420,000

IF    Betemit    $1,500,000    (2/5m)

C    Castro      $1,400,000

SP:

Kershaw     $8,000,000

Bills     $9,000,000

Kuroda    $8,000,000    (+$2m deferred to 2013)

Lilly      $12,000,000

Beachy    $435,000

RP:

Jansen     $435,000

Guerra      $420,000

Elbert        $420,000

Lindblom   $420,000

Ames     $420,000

Hawksworth    $435,000

T. Miller    $1,250,000

Total: $107,330 (not counting deferred)

I traded Ethier to the White Sox in a 3 team deal:

Dodgers get: Martin Prado, Brandon Beachy

White Sox get: Ethier, James Baldwin

Braves get: Carlos Quentin, Matt Guerrier (+ $2m)

I struggled with whether Ethier alone was enough return for the White Sox to make the deal, so I added Baldwin. The Braves need a RH OF and a vet reliever to take up some of the enormous amount of innings their young relievers threw. Linebrink is a FA, and Guerrier basically replaces him. They have that great group of young starters coming up so they can afford to part with Beachy.

I realize two $100m contracts is daunting, but the Dodgers have a bunch of money coming off in the next two years, including Kuroda, Lilly, and Uribe, plus a cost controlled bullpen and cost control in Gordon and Sands, not to mention a bunch of deferred money expiring soon. Even with big contracts to Kemp and Fielder, there still should be money to extend Kershaw next off-season. The rest of the rotation after Kershaw and Bills will be young and cost controlled after 2013, including Beachy, Eovaldi, Webster, Lee, Withrow, and Gould as possibilities.