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Quick Notes: The San Diego Padres took out a loan for about $50 million in September per the Athletic
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
Despite selling more tickets this season than all but one Major League Baseball team, the San Diego Padres took out a loan of about $50 million in September to address short-term cash flow issues, as reported by The Athletic.
According to the article, "MLB teams commonly access lines of credit to pay their bills, leading some officials in the sport to suggest that any concern should be tempered because the Padres were ultimately creditworthy enough to secure the loan. However, other officials briefed on the team’s finances, who were not authorized to speak publicly, viewed the Padres’ situation as worrisome."
In a statement to The Athletic, Padres CEO Erik Greupner said, "The Padres organization continues to have access to all the resources, financial and otherwise, needed to field a championship-caliber team for the fans of San Diego. We established a capital plan for 2023 with our ownership group and lender partners and are operating our business accordingly."
Despite robust ticket sales this year and a top-five payroll in Major League Baseball for a second straight season in 2023, it wasn’t enough to convince ownership to increase investment in hopes of achieving better results next year. During this year’s trade deadline, the Padres didn’t add any new players and failed to make the playoffs, finishing two games behind a Wild Card berth.
To add to the team's challenges, the Padres' lead owner, Peter Seidler, has experienced recent health troubles, announcing in September that he underwent an unspecified medical procedure.
Another anonymous Padres official told The Athletic, "The payroll levels we’ve maintained have likely exceeded what we could have reasonably supported, but it was part of the larger plan."
The Padres boast a highly paid roster with players such as Xander Bogaerts, pitcher Yu Darvish, and third baseman Manny Machado, among others. One notable player for Nationals’ fans is former Washington Nationals outfielder Juan Soto. Soto is the third highest-paid player on the Padres, earning a salary of $23,000,000 this year, making trade rumors surrounding the former Washington Nationals’ outfielder a distinct possibility. Soto alone is projected to make $33MM in arbitration, according to MLBTR’s Matt Swartz.
Why does this matter to the Washington Nationals?
Ultimately, it doesn't significantly impact the Washington Nationals’ plans or team strategy. What matters is that the Nationals are on track to build a team that can potentially compete for a wild card spot soon, especially given that the Nationals traded away Juan Soto at an opportune time.
What do you think?
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