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Details of Tyler Glasnow’s 5-year, $136.5625 million contract with the Dodgers

Tyler Glasnow was traded to the Dodgers and signed to a five-year, $136.5 million contract on December 16, 2023.
Tyler Glasnow was traded to the Dodgers and signed to a five-year, $136.5 million contract on December 16, 2023.
Photo: Los Angeles Dodgers

With the Dodgers’ trade with the Rays now official, pitcher Tyler Glasnow and outfileder Manuel Margot are now Dodgers, while Ryan Pepiot and Jonny DeLuca are with Tampa Bay.

As part of the trade, the Dodgers signed Glasnow to a five-year, $136.5625 million contract. He was already signed for $25 million in 2024, so this deal adds four year and a little more than $111.5 million in new money.

Glasnow’s contract with the Dodgers converts that $25 million salary into a $10 million signing bonus and $15 million salary, per Bob Nightengale of USA Today. If the Dodgers exercise Glasnow’s club option in 2029, he would earn $145 million over the five years.

“It was plenty of money. I was super happy with the money and it’s somewhere I’m super interested to be,” Glasnow said of his contract with the Dodgers. “I guess I was never super interested in trying to get as much as I possibly could. But it just worked out really well for me.”

Here is the payout schedule of the contract, per the Associated Press:

$10 million signing bonus (due by December 31, 2023)
2024: $15 million
2025: $30 million
2026: $30 million
2027: $30 million
2028: $21,562,500 player option

If Glasnow declines that 2028 player option, it becomes a club option for the Dodgers worth $30 million.

Major League Baseball’s collective bargaining agreement counts player options as guaranteed money when it comes to determining payroll for competitive balance tax purposes. Glasnow’s contract guarantees totals of $136.5625 million and five years, so his average annual value of $27.3125 million is what counts toward the CBT payroll.

Margot is due $10 million in 2024, and has a $12 million club option in 2025 with a $2 million buyout.

As part of the trade with the Rays, Tampa Bay is sending up to $4 million to the Dodgers. From Marc Topkin at the Tampa Bay Times, who wrote “The Dodgers will get $2 million now and the other $2 million only if they decline the option.”

The Associated Press notes that the first $2 million payment from the Rays is due to the Dodgers on August 2, 2024, and should Margot’s 2025 option get declined, the other $2 million would come on December 1, 2026.

With the additions of Glasnow and Margot, the Dodgers’ 2024 payroll for competitive balance tax purposes is roughly $254.5 million, which includes 14 players under contract and 10 more eligible for salary arbitration.