The Los Angeles Dodgers have traded Yasiel Puig, Alex Wood, Matt Kemp, Kyle Farmer, and $7 million to the Cincinnati Reds for Homer Bailey, Jeter Downs and Josiah Gray. Bailey will reportedly immediately be released by the Dodgers.
In making this deal, the Dodgers save about $13 million in luxury tax payroll calculations — Bailey counts only $17.5 million towards the luxury tax this year, due to his long term deal being averaged out for luxury tax purposes, even though he’s actually due almost $30 million between his 2019 salary and his 2020 option buyout.