According to Ken Rosenthal of Fox Sports the Manny Ramirez suspension frees up just $2.7MM in payroll this year for the Dodgers- or about $5MM less than originally expected. Because Manny's contract is deferred over the course of many years, he'll lose the money gradually, instead of all at once. Though Manny was originally expected to lose close to $8MM in total, he'll only lose $6.8MM. The Dodgers save $2.7MM this year and $1.37MM in each of the next three seasons.
Rosenthal adds that the Dodgers are expected to spend on pitching if they decide to make any additions.