Sources: Dodgers trade Matt Kemp, Yasiel Puig in blockbuster deal with Reds

Matt Kemp, Yasiel Puig, Alex Wood, and Kyle Farmer have been traded to the Cincinnati Reds, league sources tell Yahoo Sports. In return, the Reds will send pitcher Homer Bailey and prospects Jeter Downs and Josiah Gray to the Los Angeles Dodgers. Los Angeles will also send $7 million to Cincinnati as part of the deal.

Downs, 20, is a legitimate cusp-of-the-top 100 prospect. The second baseman slashed .257/.351/.402 last season for the Class A Dayton Dragons. Gray, 21, struck out 59 batters in 52 1/3 innings during 12 starts for the Greeneville Reds in the rookie-level Appalachian league.

The upshot for the Dodgers is clearing money under the luxury-tax threshold. Matt Kemp is a $20 million hit this year and Yasiel Puig and Alex Wood somewhere from $20-$22 million. Even though Homer Bailey and his buyout will cost $28 million, the tax hit is just $17.5 million.

Related: See major players that have switched teams this offseason: 

33 PHOTOS
MLB players who have switched teams over the 2018-19 offseason
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MLB players who have switched teams over the 2018-19 offseason

INF Manny Machado

Left the Los Angeles Dodgers in free agency to sign with the San Diego Padres

(Photo by Rob Tringali/MLB Photos via Getty Images)

OF Bryce Harper

Left the Washington Nationals in free agency to sign with the Philadelphia Phillies

(Photo by Dustin Bradford/Getty Images)

OF Yasiel Puig

Traded from the Los Angeles Dodgers to the Cincinnati Reds

(Photo by Keith Birmingham/Digital First Media/Pasadena Star-News via Getty Images)

2B DJ LeMahieu

Left the Colorado Rockies in free agency to sign with the New York Yankees

(Photo by Rob Leiter/MLB Photos via Getty Images)

OF Matt Kemp

Traded from the Los Angeles Dodgers to the Cincinnati Reds

(Photo by Maddie Meyer/Getty Images)

RHP Joe Kelly

Left the Boston Red Sox in free agency to sign with the Los Angeles Dodgers

(Photo by Billie Weiss/Boston Red Sox/Getty Images)

C Yasmani Grandal

Left the Los Angeles Dodgers in free agency to sign with the Milwaukee Brewers

(Photo by Alex Trautwig/MLB Photos via Getty Images)

2B Robinson Cano

Traded to the New York Mets from the Seattle Mariners

(Photo by John McCoy/Getty Images)

RHP Edwin Diaz

Traded to the New York Mets from the Seattle Mariners

(Photo by John Cordes/Icon Sportswire via Getty Images)

RHP Jeurys Familia

Left the Oakland Athletics in free agency to sign with the New York Mets

(Photo by Rob Leiter/MLB Photos via Getty Images)

RF Andrew McCutchen

Left the New York Yankees in free agency to sign with the Philadelphia Phillies

(Photo by Alex Trautwig/MLB Photos via Getty Images)

INF Jed Lowrie

Left the Oakland A's in free agency to sign with the New York Mets

(Photo by Al Bello/Getty Images)

RHP Ivan Nova

Traded from the Pittsburgh Pirates to the Chicago White Sox

(Photo by Justin Berl/Getty Images)

LHP Patrick Corbin

Left the Arizona Diamondbacks in free agency to sign with the Washington Nationals

(Photo by Jonathan Newton / The Washington Post via Getty Images)

1B Paul Goldschmidt

Traded from the Arizona Diamondbacks to the St. Louis Cardinals

(Photo by Jennifer Stewart/Getty Images)

SS Jean Segura

Traded from the Seattle Mariners to the Philadelphia Phillies

(Photo by Rob Leiter/MLB Photos via Getty Images)

1B/DH Edwin Encarnacion

Traded from the Cleveland Indians to the Seattle Mariners

(Photo by Bob Levey/Getty Images)

1B Justin Bour

Left the Philadelphia Phillies in free agency to sign with the Los Angeles Angels

(Photo by Rich Schultz/Getty Images)

1B Yonder Alonso

Traded by the Cleveland Indians to the Chicago White Sox

(Photo by Leslie Plaza Johnson/Icon Sportswire via Getty Images)

OF Michael Brantley

Left the Cleveland Indians in free agency to sign with the Houston Astros

(Photo by David Maxwell/Getty Images)

RHP Matt Harvey

Left the Cincinnati Reds in free agency to sign with the Los Angeles Angels

(Photo by Justin Berl/Getty Images)

RHP Anibal Sanchez

Left the Atlanta Braves in free agency to sign with the Washington Nationals

(AP Photo/Jae C. Hong, File)

DH Nelson Cruz

Left the Seattle Mariners in free agency to sign with the Minnesota Twins

(AP Photo/Ted S. Warren)

RHP Kendall Graveman

Left the Oakland A's in free agency to sign with the Chicago Cubs

(AP Photo/Frank Franklin II)

RHP Charlie Morton

Left the Houston Astros in free agency to sign with the Tampa Bay Rays

(AP Photo/Frank Franklin II, File)

Outfielder Domingo Santana

Traded by the Milwaukee Brewers to the Seattle Mariners

(Photo by Harry How/Getty Images)

Infielder Daniel Murphy

Left the Chicago Cubs in free agency to sign with the Colorado Rockies

(Photo by David Banks/Getty Images)

RHP Joakim Soria

Left the Milwaukee Brewers in free agency to sign with the Oakland A's

(Photo by Harry How/Getty Images)

RHP Andrew Miller

Left the Cleveland Indians in free agency to sign with the St. Louis Cardinals

(Photo by Gregory Shamus/Getty Images)

2B Jurickson Profar

Traded by the Texas Rangers to the Oakland A's

(Photo by Stephen Brashear/Getty Images)

RHP Trevor Cahill

Left the Oakland A's in free agency to sign with the Los Angeles Angels

(Photo by John Cordes/Icon Sportswire via Getty Images)

2B Brian Dozier

Left the Los Angeles Dodgers in free agency to sign with the Washington Nationals

(Photo by Maddie Meyer/Getty Images)

RHP Shelby Miller

Left the Arizona Diamondbacks in free agency to sign with the Texas Rangers

(Photo by Jennifer Stewart/Getty Images)
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The Dodgers’ luxury-tax payroll is still going to be more than $180 million, including the money they’re sending to Cincinnati. If they want to stay under, free agent outfielder Bryce Harper signing with the Dodgers isn’t happening. If that’s not a concern, it’s a possibility.

If the Dodgers pursued J.T. RealmutoCorey Kluber, A.J. Pollock, Craig Kimbrel or pretty much anyone else, they remain safely under the luxury-tax threshold.

Like with their players on the field, the Dodgers relish flexibility financially. This deal offers it.

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