Dodgers to pay Padres $18M of $32M next year in Kemp trade
Dec. 22, 2014
NEW YORK (AP) — The Los Angeles Dodgers owe the Padres $18 million next year as part of the $32 million they agreed to pay in last week's trade that sent outfielder Matt Kemp to San Diego.
Los Angeles will give San Diego six $3 million installments in 2015, payable on the first of each month during regular season, according to information obtained by The Associated Press.
The Dodgers owe $3.5 million annually in each of the following four seasons, $600,000 on the first of each month from April through August and $500,000 on Sept. 1.
Kemp is due $107 million in the remaining five seasons of the $160 million, eight-year deal he signed with the Dodgers before the 2012 season: $21 million next year and $21.5 million in each of the final four seasons.
Because of the cash involved, the Padres in effect pay Kemp $75 million: $3 million in 2015 and $18 million in each remaining year.
The Dodgers are on track to exceed the $189 million luxury tax threshold next year and pay at a 40 percent rate for the overage. They would pay at a 50 percent rate if they go over again in 2016.
San Diego also received catcher Tim Federowicz as part of Friday's trade, while the Dodgers obtained catcher Yasmani Grandal and right-handers Joe Wieland and Zach Eflin.