A year after the Padres significantly reshaped their franchise by trimming payroll and trading star player Juan Soto to the Yankees, the team is again grappling with financial challenges. Heading into 2025, San Diego plans to maintain a $169 million payroll, staying under the $241 million luxury tax threshold.
However, their current projections for 2025 show a payroll of nearly $210 million and a luxury tax figure of $244 million, exceeding the threshold. This leaves the Padres needing to cut approximately $40 million while still addressing key roster needs.
The team has notable gaps to fill, including a starting pitcher to join Dylan Cease, Michael King, and Yu Darvish, as well as replacements for departed players such as Jurickson Profar, David Peralta, and Donovan Solano. Any moves to reduce payroll will likely create additional holes, complicating the situation for A.J. Preller and the front office.
One potential avenue to save money is trading Luis Arraez. Acquired in May, Arraez excelled with a .318 batting average and earned his third consecutive batting title. Despite his exceptional contact skills, his declining walk rate, lack of power, and defensive limitations make him a trade candidate.
Arraez is projected to earn $14.6 million in arbitration, and trading him could lower the payroll to $195 million while opening the door to signing a less expensive replacement, such as Josh Bell, Ty France, or Anthony Rizzo. Additionally, a trade might bring assets to address other needs, like the rotation or outfield.
Alternatively, the Padres could explore a contract extension with Arraez. A backloaded deal could reduce his immediate salary, potentially saving $4-10 million on the 2025 payroll. For example, a six-year, $60 million contract structured to pay $5 million in the first year could provide substantial short-term relief. However, this strategy risks pushing financial problems into future seasons.
The Padres must decide whether to trade Arraez, extend him, or look elsewhere to trim payroll while staying competitive. What would you do? Share your thoughts!
Be the first to comment