Can you feel it Los Angeles?

If you’re a die-hard Dodger fan you can. It’s a sense of calmness, of warmth, of tranquility hanging over the City of Angles tonight – and it’s wonderful.

It’s knowing that 25-year-old left-hander Clayton Kershaw will be a Dodger for a very long time.

It’s a GREAT night to be a Dodger fan!
(Photo credit: Jon SooHoo – Click on photo to enlarge)

Although the reported seven-year/$215 million contract extension has yet to be officially announced by the Dodgers and probably won’t be until Friday, multiple sources, including MLB.com Dodgers beat reporter Ken Gurnick, say it’s a done deal. Even Dodgers President and CEO Stan Kasten has said as much.

“(Hopefully) by Friday morning we will have an announcement,” Kasten told Gurnick.

Kershaw’s seven-year contract extension is a huge relief for Dodger fans. (Photo credit – Jon SooHoo)

Late Wednesday evening when the buzz of the Kershaw news was beginning to settle down and the calmness, warmth and tranquility began settling in, CBSSports.com’s Jon Heyman reported on Twitter that Kershaw will earn $4 million in 2014 with an $18 million signing bonus ($22 million total), $30 million in 2015, $32 million in 2016, $33 million in 2017, $33 million in 2018, $32 million in 2019, and $33 million in 2020.

The deal also includes an “opt out” clause for Kershaw after five years, which is very favorable for the Dodgers. If Kershaw chooses to leave the Dodgers after five years, he would be walking away from $65 million for the final two years of the contract. By the same token, Kershaw will be 30 years old after the fifth year of the contract and if healthy he could earn a very significant raise over what the Dodgers would pay him for those final two years of the contract. In the simplest of terms, this is a great contract for everyone involved and a credit to the outstanding work of Casey Close (Kershaw’s agent) and Ned Colletti for getting it done.

Perhaps the most creative part of the seven-year/$215 million deal is the first year of the contract. While it may seem odd that Kershaw will only make $4 million in salary in 2014, the $18 million signing bonus is a stroke of genius by Close. Because Kershaw’s home state of Texas has no state income tax, he will not be subjected to state taxes on the $18 million; however, the $4 million that he receives in salary for the 2014 season will be taxed based on where the team plays during the season – including California, which has a very high state income tax.

The bottom line is that Clayton Kershaw is here to stay for the next seven years.

Sleep well Los Angeles… sleep well.