The San Diego Padres are not fretting about the large tax they may have to pay for bettering their roster this offseason.
Padres won’t compromise winning for saving money
Per MLB.com’s AJ Cassavell, Padres CEO Erik Greupner had this to say about how the franchise will remain aggressive to add winning talent, even if it costs them much money:
“If that’s what it takes to put together a competitive team that we think can accomplish the goals we have as an organization, then we would be willing to do that this year,” Greupner said of exceeding the CBT. “I think that’s just a further commitment and really a proof-in-the-pudding type moment for the fanbase that we mean what we say.”
“We’re not backing away from the plan to try to win a World Series championship. And we’re doing everything we possibly can, putting every resource we can into fielding a competitive team that can compete for that championship.”
Padres have made solid moves amid quiet offseason
San Diego has had one of the more uneventful offseasons among the National League powerhouses. The Padres managed to acquire stout outfielders Connor Joe, Yuli Gurriel, and Jason Heyward, as well as veteran righty Nick Pivetta.
Nevertheless, having lost All-Star OF Jurickson Profar and former Gold Glove Award winner Ha-Seong Kim, the Padres still have ground to make up if they want to compete with the much-improved Los Angeles Dodgers and New York Mets.
How the Padres could find themselves in the tax
As it stands, San Diego has $196.93 million on their books for 2025. Seeing that they dipped below the first tax threshold in 2024, the Padres would need to exceed $241 million in payroll for next season to pay a first-year Competitive Balance overage tax of 20 percent.
There are still a handful of talents on the open market who would bolster their roster tremendously while raising their payroll. Such stars include standout slugger J.D. Martinez, efficient hitter Jose Iglesias, and starter Kyle Gibson. The Padres could use another power hitter, which makes a player like Martinez one to watch.
St. Louis Cardinals superstar Nolan Arenado is also linked to the franchise via trade. He’s owed a combined $52 million over the next three seasons, and $21 million in 2025. No matter which route San Diego takes, it’s clear that they’ll spend to give themselves the best shot at winning the next Fall Classic.