The San Diego Padres are currently experiencing the most successful period in their history by several measures. In the past six years, they have made the playoffs four times, a sharp increase compared to just five appearances in their first 51 seasons. Their improved performance is reflected in the team’s winning percentages, with three of the top six and four of the top eight finishes occurring within the last eight years. This success has energized a fan base eager for the team’s first World Series title, with attendance records peaking recently, notably surpassing three million fans annually from 2023 to 2025.
Late owner Peter Seidler invested heavily to secure a championship, with the team’s payroll rising dramatically from $71 million in 2017 to $257 million in 2023. This financial commitment has paid off, as the Padres now contribute to the league’s revenue sharing system rather than receiving money. Following Seidler’s death in November 2023, his family has been embroiled in a dispute over control of the franchise. John Seidler has since become Major League Baseball’s official control person, and the family is exploring strategic options, including a potential sale of the team. Despite these developments, the Padres plan to maintain their current payroll levels for 2025.
Financially, the Padres ended 2025 with payroll expenses around $231 million, including a competitive balance tax (CBT) of about $10 million. Their projected 2026 payroll is expected to decrease to roughly $196 million, which is below the $244 million CBT threshold, giving general manager AJ Preller a modest $25 to $30 million to work with for player acquisitions. However, spending beyond the threshold incurs a 30% tax, complicating payroll flexibility. As a result, several key players, such as outfielder Ramon Laureano and pitcher Nick Pivetta, have appeared in trade rumors, signaling a possible need to reduce salary commitments while strengthening the roster.
Trading players to balance payroll and improve the team is challenging. While the Padres successfully executed a notable trade by sending Juan Soto and Trent Grisham to the Yankees two years ago, such moves are hard to replicate regularly. The article explores various trade scenarios including trading Laureano, whose $6.5 million salary is considered affordable but finding a comparable replacement could be costly. Pivetta, whose salary jumps significantly in 2026, is seen as a prime candidate for trade, though losing him would make replacing San Diego’s most reliable starter difficult.
Jake Cronenworth represents a compromise option; he’s a versatile, reliable player with a reasonable contract and could be traded to free up salary space while bringing back talent. Trading Xander Bogaerts could be a costly but potentially strategic move given his $25 million annual salary through 2033 and signs of decline. Manny Machado also shares a similar long-term, high-value contract, making both players’ futures in San Diego a critical financial consideration.
The most drastic potential move discussed is trading superstar Fernando Tatis Jr., who signed a massive 14-year, $340 million contract extension in 2021. Despite his value on and off the field—driving ticket and merchandise sales—financial pressures may force the Padres to consider it. However, trading Tatis risks alienating fans and might not bring in adequate baseball returns due to the perceived financial motivations behind such a move.
With options like trading Tatis or other stars off the table, the Padres’ best chance to manage payroll might be through trading players like Cronenworth or Pivetta, while keeping salary-friendly players like Laureano. The Padres’ front office faces a tough balancing act of maintaining competitiveness without overspending, as they also consider whether to re-sign key pitchers and build a team capable of contending for a title.
Fan Take: This insight into the Padres’ financial and roster challenges highlights how even successful teams must carefully navigate player salaries and trades to stay competitive. Baseball fans should watch closely, as these decisions could reshape the Padres and set a broader example of how big-market teams manage the fine line between championship aspirations and economic realities.
