Report: Padres planning to cut payroll from $253M to $200M for 2024

The San Diego Padres' payroll will be going down next season.

San Diego's front office plans to field a roster valued at around $200 million, sources told Kevin Acee of the San Diego Union-Tribune.

One of the reasons for the drop is reportedly due to the club being out of compliance with MLB regulations for the team's debt service ratio.

The Padres had a $253-million payroll in 2023, which was the third-highest total in the majors behind the New York Yankees and New York Mets.

San Diego has doubled its revenue since 2018 when the club's payroll sat at $104 million, a source told Acee.

The team has a combined $970 million invested into long-terms contracts for Fernando Tatís Jr., Manny Machado, and Xander Bogaerts. Meanwhile, Juan Soto is heading into his final arbitration-eligible season in 2024 before potentially entering free agency. There's also another $288 million in extensions that was handed out to Yu Darvish, Joe Musgrove, and Jake Cronenworth.

NL Cy Young favorite Blake Snell and All-Star closer Josh Hader are primed to test the open market at the conclusion of this season.