Dodgers Digest Los Angeles Dodgers Baseball Blog
So, about that news everybody has been waiting for … well, following the trade earlier today to clear 40-man roster space, Joe Kelly‘s contract with the Dodgers is now official!
The Los Angeles Dodgers have agreed to terms with right-handed pitcher Joe Kelly on a one-year contract for $8 million.
— Los Angeles Dodgers (@Dodgers) December 11, 2023
Also, the Dodgers finalized some deal with a guy named Shohei Ohtani as well. Longest signing statement ever, so of course it involves Mark Walter.
The Los Angeles Dodgers have signed two-time American League Most Valuable Player Shohei Ohtani to a 10-year contract. pic.twitter.com/mggYwgp01i
— Los Angeles Dodgers (@Dodgers) December 12, 2023
The best in Sho. Welcome to the Los Angeles Dodgers, Shohei Ohtani!
— Los Angeles Dodgers (@Dodgers) December 12, 2023
ロサンゼルス・ドジャースへようこそ、大谷翔平！ pic.twitter.com/7wBuoKZ9ze
Shohei Ohtani's statement: "Dodger fans, thank you for welcoming me to your team. I can say 100 percent that you, the Dodger organization and I share the same goal – to bring World Series parades to the streets of Los Angeles.”
— Fabian Ardaya (@FabianArdaya) December 12, 2023
God, this feels great, man.
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Oh right, as far as the other big news from today, Shohei will be making ~$2 million dollars a year for the next decade.
In an effort to enable the Los Angeles Dodgers to continue spending around stars Ohtani, Mookie Betts and Freddie Freeman, Ohtani agreed to defer all but $2 million of his annual salary — $68 million of his $70 million per year — until after the completion of the contract. The deferred money is to be paid out without interest from 2034 to 2043.
The payments will be even throughout the two 10-year periods, meaning Ohtani will make $2 million each year from 2024 to 2033, then $68 million each year from 2034 to 2043.
In the end, his CBT number will be ~$46 million a year for the next 10 years.
The deferrals also give Dodgers extra freedom navigating the competitive balance tax, or luxury tax as it’s called. For CBT purposes, the expected average annual value on the contract is said to be about $46 million per year, people briefed on the terms said. The $46 million average annual value is still the highest in MLB history, topping the $43.3 million average annual value Max Scherzer received in agreeing to a three-year deal with the New York Mets in 2021.
Baseball’s collective bargaining agreement makes clear that there is no limit on how much salary a player and team can agree to defer. The CBA also includes a net-present-value calculation for luxury-tax purposes — a calculation that estimates the value of a player’s contract on a season-by-season basis. That’s how the $46 million figure is determined.
So basically, for all intents and purposes this is a 10-year, $460 million contract, and it’s always hard to characterize that as a bargain, but considering all the other financial factors at play here, it almost certainly is that.
Every team could’ve done this, by the way.
My understanding is Ohtani took this approach (massively deferring his salary to keep team payroll flexible) with all the teams he negotiated with
— Jack Harris (@ByJackHarris) December 11, 2023
So this wasn't a Dodgers-exclusive thing. Seems like he thought this was the best way to win in his new destination
It’s worth noting that Dodgers ownership will have to be setting a significant sum of money aside, regardless.
So, for example, the $68 million deferred from Ohtani's 2024 salary will have to be funded by 2026 (and so on for each sesaon)
— Jack Harris (@ByJackHarris) December 12, 2023
Funding mechanisms include "readily marketable securities"
While it probably won’t matter much in the case of the Dodgers, but there are stipulations that make sure the team spends what he’s saving them.
To assure the Dodgers honor his gesture of unselfishness, Ohtani asked for language in his contract that assures the club will make good on its promise to use the savings he created to build a competitive team around him, according to one source familiar with those negotiations. Balelo would not discuss any such specific language in the contract.
For a question and answer format that holds the hands of baseball fans imploding online over this, Fabian Ardaya and Evan Drellich put one of those together. Additionally, Tim Dierkes posted an article explaining why it’s not against the CBA.
The complaining from opposing fans is nearing never-before-seen levels, by the way. Cherish it.
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In news that you surely find just as important, the Dodgers have signed 28-year-old right-handed reliever Nabil Crismatt to a minor-league contract.
Source: The Dodgers have signed right-handed pitcher Nabil Crismatt to a minor league deal.
— Mike Mayer (@mikemayer22) December 8, 2023
This is … actually kinda surprising.
In 2021 and 2022 with the Padres, Crismatt put up a 3.39 ERA/3.76 FIP in 148.2 innings, making him an utterly competent middle relief arm. In 2023, he struggled to a 8.31 ERA in 13 innings, but that was mainly due to hip issues. If they’re able to get him back to his old form and/or he’s simply recovered from his injury, this is a rather amazing depth deal, since not only do they not have to pay him much, but he doesn’t take up a 40-man spot either.
Speaking of less notable signings, 25-year-old right-handed relief pitcher Eduardo Salazar was signed to a minor-league contract and assigned to AAA.
A former member of the Reds, as well as a former starter, Salazar converted to relief in 2023 and had a rough year for the most part. After breaking out in AA with a 0.68 ERA across 13.1 innings, including 22 strikeouts to just two walks, Salazar got a call-up to the majors for his debut. He allowed 11 runs in 12.1 innings there, walking as many batters as he struck out, and then put up a 9.92 ERA in 32.2 AAA innings after being demoted, walking too many batters and not missing enough bats.
That said, while he was in the majors, half his season highlights came against the Dodgers … because of course they did.
Guess he impressed somebody important.
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Moving on to front office news, the Dodgers hired Nelson Cruz as an advisor and Chris Archer as a special assistant.
The Dodgers are hiring the recently-retired Nelson Cruz to join the organization as an advisor, as @TenchyRodNYC said.
— Fabian Ardaya (@FabianArdaya) November 29, 2023
Had been in the works for a while now. The longtime Dominican big leaguer will do a lot of work for the Dodgers in Latin America.
The Dodgers have hired former big leaguer Chris Archer as a special assistant, as he told @JMackeyPG.
— Fabian Ardaya (@FabianArdaya) December 4, 2023
Played for the Rays during Andrew Friedman’s tenure there, and was teammates with GM Brandon Gomes.
Unfortunately, they are losing field coordinator Shaun Larkin to the Diamondbacks. Fortunately, he’s getting a promotion, which is always nice to see on a personal level.
The Arizona Diamondbacks fill their player development director vacancy with Shaun Larkin, who spent the past eight seasons with the Dodgers, most recently as their field director. Larkin replaces Josh Barfield, who left in late September to join the Chicago White Sox.
— Bob Nightengale (@BNightengale) December 1, 2023
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Anyway, I’m celebrating.
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