Per Tony Jackson, it's a 3 year, 17 million dollars deal. The signing (or re-signing) is a bit surprising. For one, Blake is 35-years-old and the Dodgers at last check are still inthe National League, which to this point does not have the designated hitter. That means Blake will be 38 and a probable liability in the field come the end of this contract.
Blake's Marcels/Chone projections (as a third baseman) have Blake as a 2.1 WAR player next season. If you assume he loses 0.5 WAR as he ages, you have a 1.6 and 1.1 WAR third baseman in 2010 and 2011. That's a combined 4.8 WAR, and good for roughly 29 million. The salary isn't the problem here, (well, it is if you think 5.6 million signs Joe Crede) but rather the length.
Understandably, three years may have been a sticking point for Blake's camp, but does that really mean the Dodgers should've given in? A good financial deal for the Dodgers, and given the Dodgers insistence of Blake DeWitt at second along with prospect Joshua Bell's arrival dated for at least a few years away, they aren't blocking anyone of note anymore.