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Dodgers 2024 payroll after Tyler Glasnow trade & contract extension

MLB: JUN 25 Royals at Rays Photo by Cliff Welch/Icon Sportswire via Getty Images

The Dodgers on Saturday completed their four-player trade with the Rays by signing pitcher Tyler Glasnow to a five-year, $136.5625 million contract, the team announced.

Glasnow and outfielder Manuel Margot will be sent by Tampa Bay along with cash considerations to the Dodgers, with pitcher Ryan Pepiot and outfielder Jonny DeLuca heading to the Rays. The trade has not yet been announced by the teams.

Glasnow had one-year and $25 million remaining on his two-year contract signed with Tampa Bay during the 2022 season. Had the trade happened without the extension, the contract would have counted as $25 million toward the Dodgers’ competitive balance tax, as any multi-year contract traded between seasons is recalculated to reflect the remainder of the deal.

The new deal amounts to $136.5 million over five years, an average of $27.3 million per year. That includes a 2028 player option at $21.5625 million — which is delined would give the Dodgers a $30 million club option — which is treated as another guaranteed year when determining payroll for CBT purposes.

Margot is due $10 million in 2024, and his $12 million club option for 2025 carries a $2 million buyout. That puts his CBT payroll at $12 million for next year, reflecting the total guaranteed money and guaranteed year left on his contract.

Marc Topkin of the Tampa Bay Times reported Saturday that the Rays were sending up $4 million to the Dodgers in the trade — $2 million now, and the other $2 million to cover the buyout should Los Angeles decline Margot’s club option for 2025.

Adding Glasnow and Margot gives the Dodgers 14 players under contract, plus 10 more players eligible for salary arbitration. Factoring in the money coming from the Rays in the trade, plus some assumptions, and filling out the active roster, the Dodgers payroll in 2024 for competitive balance tax purposes is roughly $254.5 million, updating our glimpse at the payroll from earlier this week after Shohei Ohtani’s deal became official.

Dodgers 2024 payroll after the Tyler Glasnow trade

Player Pos Actual payroll CBT payroll Notes
Player Pos Actual payroll CBT payroll Notes
Shohei Ohtani DH/P $2,000,000 $46,076,769 1st yr of 10-yr deal
Tyler Glasnow SP $25,000,000 $27,312,500 1st yr of 5-yr deal
Mookie Betts 2B/RF $22,000,000 $25,554,824 4th yr of 12-yr deal
Freddie Freeman 1B $20,000,000 $24,699,249 3rd yr of 6-yr deal
Chris Taylor IF/OF $13,000,000 $15,000,000 3rd yr of 4-yr deal
Max Muncy 3B $12,000,000 $12,000,000 1st yr of 2-yr deal
Manuel Margot OF $10,000,000 $12,000,000 1 yr left + option
Jason Heyward RF $9,000,000 $9,000,000 1-year deal
Joe Kelly RHP $8,000,000 $8,000,000 1-year deal
Miguel Rojas IF $5,000,000 $5,500,000 2nd yr of 2-yr deal
Tony Gonsolin SP $5,400,000 $5,325,000 2nd yr of 2-yr deal
Austin Barnes C $3,500,000 $3,500,000 2nd yr of 2-yr deal
Yency Almonte RHP $1,900,000 $1,900,000 1-year deal
Blake Treinen RHP $1,000,000 $1,000,000 Option exercised Nov 5
Will Smith C $9,150,000 $9,150,000 avg. arb projection
Walker Buehler SP $8,027,500 $8,027,500 avg. arb projection
Ryan Yarbrough LHP $3,900,000 $3,900,000 avg. arb projection
Evan Phillips RHP $3,250,000 $3,250,000 avg. arb projection
Brusdar Graterol RHP $2,525,000 $2,525,000 avg. arb projection
Dustin May SP $2,325,000 $2,325,000 avg. arb projection
Caleb Ferguson LHP $2,275,000 $2,275,000 avg. arb projection
Alex Vesia LHP $1,350,000 $1,350,000 avg. arb projection
Gavin Lux SS $1,000,000 $1,000,000 avg. arb projection
J.P. Feyereisen RHP $950,000 $950,000 avg. arb projection
Remaining 4 roster spots $3,200,000 $3,200,000 2024 minimum is $740k
Money from Rays -$2,000,000 -$2,000,000
Minor league salaries $2,500,000 MiLBers on 40-man roster
Pre-arbitration pool $1,666,667 $50m split by 30 teams
Team benefit costs $17,500,000
Totals $173,752,500 $254,487,508
as of December 15, 2023

The first threshold for competitive balance tax in 2024 is $237 million. As a team that paid the tax in each of 2021, 2022, and 2023, the Dodgers are subject to the highest tax rates should the exceed any of the four thresholds, which are $20 million apart. The Dodgers would pay 50 percent in tax for the first $20 million, 62 percent for the next $20 million, 95 percent for the next $20 million, and 110 percent of anything over $297 million.