The Dodgers have declined the option on Brad Penny's contract for the 2009 season, freeing up $7.25 million in payroll.
Los Angeles bought out the final year of Penny's contract for $2 million instead of paying him the full $9.25 million.
Penny, who won 16 games in 2007 and 2008, was upset with the club because he wasn't offered a contract extension this spring.
Dodgers Part Ways With Penny