Even though the San Diego Padres fell short of a postseason spot this year, their season was anything but disappointing. If you remember, finishing second in the NL West, they actually gave the Dodgers a serious challenge. But despite their strong performance on the field, things aren’t looking good for the Padres off the field.

The club’s financial situation is getting shakier. Remember that $50 million loan they had to take out in 2023? Well, the money troubles haven’t gone away. In fact, things have only gotten worse. The problem starts with the costly contracts.

A big part of the issue is their massive payroll tied up in long-term deals. Xander Bogaerts (32), Manny Machado (33), and Yu Darvish (38) are all locked in through at least their age-40 seasons. Bogaerts alone is still owed about $203.6 million over the next eight years, while Machado’s set to earn $39.1 million annually for seven years starting in 2027.

So, now, as the Padres look to lighten the financial load, it seems they might be putting their bet in Fernando Tatis Jr.

“Well, they got somebody’s money, backloaded contracts. Who are they’ve lost money to in the last few years? When you talk to GMS around the land, they say these guys are in big-time trouble. They’re losing money even though they’re back in the place. So you can’t trade many… Machado, you can’t trade Xando Bogarts Tatia’s contract as big as it is. It’s actually movable,” Bob Nightengale said via Foul Territory.

Well, Tatis put together an impressive 2025 season, hitting 25 HRs at .268… On top of that, he was a standout defensively, taking home both a Gold Glove and the Platinum Glove as the NL’s top overall defender. So, with numbers like that, there’s really no baseball reason for the Padres to part ways with him. But then again, they cannot deny the fact that his contract is expensive. So, could the San Diego Padres let Tatis go to better their financial situation?

As Nightengale noted, Tatis’ 14-year, $340 million deal is starting to look pretty reasonable compared to others around the league. That makes him incredibly valuable, perhaps the most tradeable big-money player in baseball at the moment.

If San Diego decides to move him, Tatis would offer the kind of return that could help them reset without completely tearing things down. But things could get tricky if the San Diego Padres decide to keep Tatis despite their payroll crunch and long-term commitments.

And adding to the challenge, the San Diego Padres’ farm system has gotten very weak. According to MLB.com, their farm system was ranked at No. 25 heading into the season. But after they dealt away top prospects like Leo De Vries, Braden Nett, Boston Bateman, Cobb Hightower, Ryan Bergert, and several others, their pipeline looks even weaker.

So when you step back, trading Tatis isn’t just about roster moves, but about the Padres’ financial survival.

The San Diego Padres’ preference might lie elsewhere

Undoubtedly, trading Tatis would definitely leave a big hole in the Padres’ offense, but it looks like the team’s priorities are shifting in another direction.

There’s plenty of uncertainty surrounding their starting rotation. For instance, Dylan Cease, who has recently emerged as the team’s ace, is set to hit free agency. Michael King’s situation is also up in the air with a mutual option in play, and the team can’t be too confident about what they’ve seen from Yu Darvish lately.

Hence, pitching is clearly at the top of the San Diego Padres’ offseason to-do list. And their president, A.J. Preller, made that clear, saying, “The core foundation, in terms of the position-player group and the bullpen, is there. Starting pitching is a clear area of need.”

So, the good news for San Diego is that there should be some solid arms available this winter. Even if Cease signs elsewhere, the Padres could look to fill the void with someone like Framber Valdez or Ranger Suarez — both of whom would bring much-needed stability to the rotation. What do you think the San Diego Padres should do?