THE THREE SIGNINGS: DEFENSIVE TEETH AND BULLPEN BRAWN
LOS ANGELES, CA—The “recalibration” of the Los Angeles Dodgers’ dynasty has moved from theory to reality. In a flurry of mid-December moves, Andrew Friedman has finalized three key free-agent contracts that redefine the team’s core for 2026. The signings aren’t just about talent; they are about structured aggression.
- Edwin Díaz (RP): The crown jewel. The Dodgers secured the elite closer with a three-year, $69 million contract that includes a $9 million signing bonus. In classic Dodger fashion, $13.5 million is deferred, ensuring he remains on the payroll through 2047.
- Teoscar Hernández (OF): After a “thank you” year in 2024, Teoscar has officially re-upped for the long haul. His new three-year, $66 million deal comes with a massive $23 million signing bonus—a reward for his 2024 World Series heroics.
- Miguel Rojas (SS/Utility): The captain of the clubhouse returns on a one-year, $5.5 million deal. While the dollar amount is lower, the “bonus” here is in the guaranteed playing time as the Dodgers pivot their infield.
THE “RECALIBRATED” ICONS: OHTANI & YAMAMOTO
The “adjusted structures” surrounding the Japanese superstars are designed to maximize the Dodgers’ Competitive Balance Tax (CBT) flexibility.
- Shohei Ohtani: While his $700M total remains, the Dodgers have reportedly fine-tuned the escrow payments for his $680M deferrals. This allows the team to maintain a league-high $350M adjusted payroll while still staying aggressive in the “win-now” window.
- Yoshinobu Yamamoto: His contract has hit its first “escalator” phase. In 2026, his base salary jumps to $12 million, but his luxury tax hit remains a steady $27M AAV. Insiders suggest the “adjustment” involves new performance incentives based on innings pitched, providing Yamamoto with even higher earning potential as he enters his physical prime.
THE TWO STARS TRADED: CLEARING THE DECK
To make the math work and clear space for the new arrivals, the Dodgers executed two “recalibration” trades that have stunned the fan base:
| Star Traded | Destination | Return | The Strategic Why |
| Gavin Lux (2B/SS) | Cincinnati Reds | Mike Sirota (OF) + Draft Pick | Clearing the path for Hyeseong Kim and ensuring defensive stability with Rojas/Edman. |
| Dustin May (SP) | St. Louis Cardinals | Prospect Package | Moving a high-risk/high-reward arm to prioritize “innings eaters” like Blake Snell. |
BY THE NUMBERS: THE 2026 DODGER TAX
“We are in a very solid financial position,” President Andrew Friedman stated. “If our budget were tight, we would not be operating funds as we are now.”
The Dodgers’ deferred payment obligations have now surpassed $1.06 Billion across nine players. By deferring millions for Díaz and Hernández, the Dodgers have kept their 2026 “cash-on-hand” high enough to remain the favorites for the Tarik Skubal trade sweepstakes.
