The Toronto Blue Jays acquired third baseman Josh Donaldson earlier this offseason from the Oakland Athletics. However, they were forced to surrender a number of talented prospects as well as enter a salary arbitration hearing with Donaldson.

Toronto entered the hearing with Donaldson on Thursday. Jon Heyman of CBS Sports reported earlier today that the 29-year-old lost his case against the Blue Jays after filing for a $5.725 million salary for the 2015 season in his first year of arbitration eligibility as Super 2 player. Instead he'll earn $4.3 million, which will significantly affect his remaining three arbitration years.

Donaldson slashed .255/.342/.456 with 29 home runs and 98 RBIs in 158 games with the Athletics last season after a breakout year in 2013 where he batted .301/.384/.499 with 24 home runs and 93 RBIs. He arrived in Toronto back in November in exchange for infielder Brett Lawrie and prospects Sean Nolin, Kendall Graveman and Franklin Barreto. Lawrie is expected to start for Oakland, while starters Nolin and Graveman are considered MLB-ready. Barreto is only 18 and has ways to go before reaching the majors.

However, this arbitration case is a big win for the Blue Jays, who currently have little wiggle-room financially. Over the last two seasons the team has had record payrolls of $127 million in 2013 and $137 million in 2014, while they currently sit at $114 million heading into 2015. However, Baseball Reference projects that number will reach $127 million by the time the season begins. Sources said the team had between $5 million and $7 million to spend this offseason, barring an approval in payroll increase by ownership.

Nonetheless, the fact that Donaldson will make $4.3 million instead of $5.7 million is crucial for the Blue Jays moving forward. They have a number of decisions to make next offseason because outfielder Jose Bautista, first baseman Edwin Encarnacion and pitcher R.A. Dickey have pricey player options for the 2016 season, and it's likely the team's performance this year will dictate such personnel moves.

Aribitration-eligible players such as Donaldson typically receive a significant raise that varies from year-to-year. In 2013 the average was a 119% increase.