Padres show no signs of slowing down with Manny Machado extension

By Rowan Kavner
Updated Feb 26, 2023 9:16 pm EST

Peter Seidler isn’t letting the ire of fellow "small-market" owners or questions about sustainability deter him from providing the hefty financial commitments that could help the San Diego Padres win their first World Series title. 

After signing shortstop Xander Bogaerts to an 11-year, $280 million deal in December and extending starter Yu Darvish for six years and $108 million earlier this month, the Padres owner followed up on his claim that Manny Machado was his top priority by extending the 30-year-old All-Star third baseman for 11 years and $350 million on Sunday morning. 

A Padres team in a bottom-third market is now operating with Major League Baseball’s third-highest payroll. 

"It’s about winning, and it’s about being exciting, and it’s about our fans young and old knowing that they’re going to be able to watch great, exciting players year after year after year," Seidler said earlier this week, prior to the Machado extension. "When we talk about risk, there’s a risk to doing nothing. We’ve chosen to really focus on the players, and what spawned out of that is this amazing relationship between our players and our fans."

Machado has seen that relationship blossom over the past four years after signing a 10-year, $300 million contract with San Diego in 2019. He noticed the packed house at FanFest before the start of this year’s spring training. He saw the Padres hats scattered among fans at the Super Bowl and the Waste Management Phoenix Open golf tournament. 

"It just shows you how much we mean to a lot of people around here," Machado said. "We’ve seen the change. We’re a part of the change." 

And now, he will continue to be for a decade longer. 

San Diego's recent ascension was made possible in large part because of Machado’s production. In 2020, he launched 16 homers in the truncated 60-game season while helping the Padres reach the playoffs for the first time in 14 years. Over the past two seasons, he's earned his fifth and sixth career All-Star nods. 

Last year, Machado was the second-most valuable position player by FanGraphs’ wins above replacement behind only Aaron Judge. Even after the Padres’ midseason trade for Juan Soto, it was Machado’s offense carrying San Diego to its first National League Championship Series appearance since 1998. 

As the supporting group around Machado elevated, so did the market for a player of his caliber. 

"We were prepared for that situation," general manager A.J. Preller said. 

Unlike Nolan Arenado, who opted in to the remainder of a contract that will pay the superstar Cardinals third baseman $144 million over the next five years, Machado made his intentions clear that he would not be doing the same. After a self-imposed Feb. 16 deadline to come to an extension had passed, Machado announced that he would be opting out of the five years and $150 million left on his deal after the 2023 season. 

He was set for a major payday next offseason when he would headline a light position-player market. 

Only, the Padres wouldn’t let it get to that point. 

Talks continued, and Machado landed the fourth-largest guarantee in league history. His deal surpassed the eye-popping $340 commitment the Padres made to Fernando Tatís Jr. around the same time two years ago. Machado's extension makes him the first North American athlete to sign two $300 million-plus contracts. San Diego is also the first MLB team to sign three players for at least $280 million.  

Add on the five-year, $100 million extension given to Joe Musgrove last season, and the Padres now have five players on nine-figure deals, including three of the 13 largest deals doled out in major-league history. Had the Padres had their way, it’s possible Trea Turner and Judge would be in San Diego, too. 

"I think the biggest thing from Peter’s standpoint, he has trust and faith in our team, our baseball group," Preller said. "Obviously, it’s a really good place to work."

On one hand, the Padres will be responsible for paying Machado, Bogaerts and Darvish into their 40s. On the other, they’ll have a core of Machado, Bogaerts, Tatís, Darvish and Musgrove for at least the next five years as they look to capture their first division title since 2006 and their first World Series championship ever. 

"It’s something we talk about all the time — the short- and long-term plan," Preller said. "It’s not unlimited resources. It’s not an unlimited budget. So, you’ve got to make decisions and choices."

Whether they can afford all those deals and still sign Soto long term or get involved in the Shohei Ohtani sweepstakes next offseason remains to be seen, but their commitment is being rewarded. 

Last year, the Padres came close to three million in attendance, a mark they had reached only once before. This year, they’ve capped season-ticket sales for the first time ever at "approximately 24,000," according to Padres CEO Erik Greupner. A wait list has already begun, and they expect to surpass that three million mark and set a franchise record for attendance in 2023. 

"I think it’s a validation of our strategy that Peter has led, which is to get out in front of the fan base by giving them a team they can believe in, they can be excited about, and trusting that they will respond and show up," Greupner said. "And they’ve done that."

Seidler is dismissing the notion that small-market teams can’t financially contend, much to the chagrin of the small-market owners who claim they can’t spend. Only the New York franchises have higher payrolls entering the 2023 season. 

Not everyone is equally enthused about San Diego’s method for success. 

"What the Padres are doing, I don’t 100% agree with, though I know that our fans probably agree with it," Rockies owner Dick Monfort said earlier this month before poking holes at the depth of the Padres’ pitching staff, which has since been upgraded.

Seidler remains unfazed. 

"Our game, the more spice that we have within reason, the better," Seidler said. "Incredible people having different opinions. That’s what makes the world go around."

The Padres’ $262 million projected payroll is nearly $100 million greater than the Rockies and will make them one of five teams set to surpass the luxury tax threshold, according to Roster Resource. Seven teams, meanwhile, are operating with a payroll under $100 million. 

While many owners tout profits over winning pedigrees and preach financial prudence over playoff contention, Seidler is stopping at nothing to field a winning product. Earlier this month, commissioner Rob Manfred tipped his hat to Seidler for his "massive financial commitment" but also questioned the Padres’ "sustainability."

"People love that word," Seidler said earlier this week. "Let’s find a different one. Do I believe our parade is going to be on land or on water or on both? Putting a great and winning team on the field in San Diego year after year is sustainable."

And, it’s something he cares about more than the frustrations of those who question his tactics. 

"The goal," Seidler reiterated, "is to win a championship."

Rowan Kavner covers the Dodgers and NL West for FOX Sports. He previously was the Dodgers’ editor of digital and print publications. Follow him on Twitter at @RowanKavner. 

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