SF Giants division rival Padres reportedly planning to slash payroll

The SF Giants are not the only team in the NL West that fell short of expectations. The Padres did the same, and now ownership wants to cut payroll.

The SF Giants are not the only team in the National League West that has fallen short of expectations this season. The San Diego Padres, who are currently competing with the Giants for third place in the division, expected to be World Series contenders after reaching the NLCS last season and adding Xander Bogaerts this offseason. However, a combination of inconsistent bullpen performance and an erratic lineup have helped tank their postseason chances. Now, according to a new report by Kevin Acee of the San Diego Union-Tribune, Padres ownership wants to cut payroll following the disappointing season.

Padres ace Blake Snell pitches against the SF Giants at Oracle Park. (2023) / Sergio Estrada-USA TODAY Sports

"In part because they are out of compliance with MLB regulations regarding their debt service ratio, according to multiple sources, the plan is to go into 2024 with player commitments of around $200 million," Acee wrote on Monday.

The Padres Opening Day payroll was just under $249 million this season. Once midseason acquisitions and the salaries of players who filled in for those on the injured list get added to the tally, they will easily eclipse $250 million. Making matters worse for San Diego, their best starting pitcher, likely Cy Young winner, Blake Snell and best reliever Josh Hader are both going to become free agents this winter. Other productive pitchers like Seth Lugo, Nick Martinez, and Michael Wacha all seem slated to hit the open market as well.

The Padres currently have more than $170 million in guaranteed 2024 salaries already on the books when incorporating Juan Soto's projected arbitration salary north of $25 million. So, unless they trade some significant salaries, they will have less than $30 million to spend this offseason to replace their ace, closer, upgrade a roster that fell short of expectations, and replace several depth pieces on the team's pitching staff.

The news that San Diego plans to overhaul its payroll should make life easier for the Giants, who already have their hands full trying to catch up to the Diamondbacks and Dodgers this offseason. In fact, some rumors have speculated that the Padres could trade Soto or shortstop Ha-Seong Kim this offseason. Obviously, getting those players out of the division would make life easier for San Francisco, but they would also be massive upgrades for the Giants.

While teams are usually hesitant to make trades within the division, the Padres would likely want big-league-ready players in those trades. Given the impending departure of several pitchers, young pitching seems like something that would be high on their wish list. The SF Giants front office is reportedly looking to use their depth of young pitching to acquire upgrades this offseason.