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The San Diego Padres reportedly took out a large loan to cover short-term obligations, including payroll. The news has led to not only online mockery, but also potential trade rumors in order to improve the franchise’s financial standing.
The Athletic broke the bombshell news on Wednesday.
The practice of pulling credit out isn’t uncommon amongst MLB teams, but it could lead to future ramifications in San Diego’s case.
Despite selling more tickets this season than all but one Major League Baseball team, the San Diego Padres took out a loan for about $50 million in September to address short-term cash flow issues and meet their obligations, including player payroll, people briefed on the team’s finances told The Athletic.
Payroll was a key aspect of that need for a loan, with the Padres holding the third-most expensive roster in baseball. The star power in the lineup, which included Xander Bogaerts, Juan Soto, and Manny Machado, led to success at the box office as the organization ranked second in ticket sales.
Unfortunately, the pricey players didn’t do enough to get the team to the postseason. San Diego finished the year just two games above .500, finishing third in the NL West.
The future might see more of the same should the team be forced to drop some of the extra weight.
Last offseason, the Padres signed shortstop Xander Bogaerts to an 11-year, $280 million contract; pitcher Yu Darvish a six-year, $108 million extension; and third baseman Manny Machado to an 11-year, $350 million contract. Those deals helped run the club’s current estimated luxury-tax number to $296 million, according to Cot’s Contracts. Now, the Padres might be in a position where they feel a need to trade another star, Juan Soto, to better their finances.
Fans online were quick to comment on the Padres’ loan via social media. Here’s what they had to say.
“THEY THOUGHT THEY COULD COMPETE WITH STEVE COHEN!”
“Soto about to be traded for a Broadway production.”
“I don’t watch baseball all that often, but WHO TAKES OUT A $50 MILLION LOAN TO ADDRESS PLAYER PAYROLL?!”
“Poverty franchise.”
Not the best look for San Diego.