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The San Diego Padres reportedly secured a substantial loan to cover immediate financial obligations, including player salaries. This news has not only resulted in online ridicule but has also sparked rumors of potential trades in order to improve the team’s financial situation.
The bombshell report was first revealed by The Athletic on Wednesday.
While it is not uncommon for MLB teams to seek credit, San Diego’s decision could have future consequences.
Despite having sold more tickets this season than all but one team in Major League Baseball, the San Diego Padres took out a $50 million loan in September to address short-term cash flow challenges and meet their obligations, including player payroll, according to sources familiar with the team’s finances as reported by The Athletic.
Player salaries played a significant role in the need for this loan, as the Padres have one of the most expensive rosters in baseball. The star power in their lineup, featuring players like Xander Bogaerts, Juan Soto, and Manny Machado, contributed to their success at the box office, with the organization ranking second in ticket sales.
Unfortunately, despite the high-priced players, the team fell short of making it to the postseason, finishing the year with just two games above .500 and placing third in the NL West.
If the team is forced to shed some of its high-cost players, the future may bring more of the same.
During the previous offseason, the Padres signed shortstop Xander Bogaerts to an 11-year, $280 million contract, pitcher Yu Darvish to a six-year, $108 million extension, and third baseman Manny Machado to an 11-year, $350 million contract. These deals contributed to the club’s current estimated luxury-tax number of $296 million, as reported by Cot’s Contracts. Now, the Padres may find themselves in a position where they need to trade another star player, Juan Soto, to improve their financial situation.
Fans took to social media to express their thoughts on the Padres’ loan. Here are some of their comments:
“They really thought they could compete with Steve Cohen!”
“Soto is about to be traded for a Broadway show.”
“I don’t watch baseball often, but who takes out a $50 million loan for player payroll?!”
“A franchise in financial distress.”
San Diego’s reputation has taken a hit with this development.
According to the Source brobible.com