The big-spending, small-market San Diego Padres took out a loan of about $50 million to help cover salary costs and short-term cash flow issues, The Athletic reported Wednesday.
The Athletic reported the Padres started the season with a player payroll of about $250 million, third highest in Major League Baseball. The team ended up missing the playoffs, though it sold 3.3 million tickets to finish in the top six in revenue in that category in MLB, a team spokesperson said.
“The Padres organization continues to have access to all the resources, financial and otherwise, it needs to field a championship calibre team for the fans of San Diego,” Padres CEO Erik Greupner said in a statement to The Athletic. “We established a capital plan for 2023 with our ownership group and lender partners and are operating our business in accordance with that plan.”
The Padres had a third-party lender willing to give them a $100-million loan, according to the report, but MLB gave the team permission for $50 million.
The Athletic writes the team's payroll is expected to be closer to $200 million in 2024, which may force the team to trade a star like Juan Soto.
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