Padres Press Clips Tuesday, January 22, 2019
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Padres Press Clips Tuesday, January 22, 2019 Article Source Author Pg. Padres signaling that prove-it time is almost here SD Union Tribune Acee 2 Look at Padres' books shows debt reduction has team in position to spend SD Union Tribune Acee 5 Fernando Tatis Jr. powers up again in DR SD Union Tribune Sanders 14 Padres roster review: Matt Strahm SD Union Tribune Sanders 16 Padres roster review: Robert Stock SD Union Tribune Sanders 19 Around the Horn: Myers front-runner for LF spot MLB.com Cassavell 22 How will McGriff do in Hall voting? MLB.com Kelly 24 Urias among MLB's Top 10 2B prospects MLB.com Rosenbaum 27 50 Moments — Almost Losing the Padres in 1973 FriarWire Center 30 #PadresOnDeck: Relievers Andres Muñoz, Gerardo Reyes and Jordan FriarWire Center 33 Guerrero all Topped 100 mph in 2018 Bold Predictions for Each Top MLB Offseason Target Still Available Bleacher Report Reuter 36 Rosenthal: The Reds’ plan for Sonny Gray; big ideas from Scott Boras; what The Athletic Rosenthal 38 the Dodgers are thinking; more note 1 ‘Padres signaling that prove- it time is almost here Kevin Acee Not all explanations are necessarily excuses. But the Padres’ explanation of their finances certainly leaves them with no more excuses. The day of spending is almost nigh, and they know it. Padres Executive Chairman Ron Fowler took the unique step this month of agreeing to open the Padres books for the Union-Tribune, which revealed a team that has addressed its financial woes in recent years as a means toward rectifying its on-field woes. What Fowler and General Partner Peter Seidler understood full well is that it also should be a signal they were turning up the fire on their own feet — that they were spelling out they have put themselves in position to spend for a competitive team. As far back as last summer, people in the Padres organization were talking about how Nolan Arenado could fit into the organization’s long-term plan. More recently, there was a discussion about the general richness of the projected free-agent classes coming up after the next two seasons. Now, it seems there must be merit to such chatter. As in, there must be. This Padres ownership — due to high-interest debt it inherited, poor decisions it approved and investments it made in building the minor league system — said it has had to put large sums of money in places other than major league payroll. Essentially, it said, the reason for that was so that it would be in a position to put larger sums of money into major league payroll when the time was right. 2 They have explained now is not that time. Not just yet. They are still evaluating many young players on the roster and believe a big expenditure on one player — for instance, Manny Machado — would not put them in the playoffs this season and could amount to investing $50 million or more before the rest of their roster realistically comprises the makings of a winner. Now, two people familiar with some of the team’s maneuvering did say the Padres were intrigued by reports last week that the best offer for Machado was much lower than anticipated. The team would certainly at least kick the tires if accurate, though it was still presented as a long shot the team would sign him. Machado’s agent has called the reports of a seven-year, $175 million offer from the White Sox “completely wrong.” Regardless of what happens with Machado, the argument that the timing of such an expenditure on such a player isn’t right won’t hold up for long. Maybe not even as long as following the upcoming season and certainly not after 2020, when top prospect Fernando Tatis will have had more than a full season in the majors and the Padres will know plenty more about many other young players. If Tatis and enough others aren’t what they’re expected to be, the Padres have bigger problems than being cheap. People will lose jobs, and the organization’s baseball operations department will start anew once again. So, for the moment, let’s postulate that the prospect portion of the Padres’ plan comes to fruition and the team trends toward contention over the next year-plus. First, it must be noted the Padres could fill their hole at third base with a long-term solution before or during spring training, or even during the season. They continue to look for creative ways to land a young player at that position. Second, they will almost certainly make moves before the trade deadline involving at least one outfielder, perhaps one of their catchers and possibly a pitcher or two. The results of those moves could both fill and open spots, in addition to further bolstering the minor league system. 3 Trades, in fact, could conceivably be the preferred method of player acquisition for a team with so many coveted prospects. Still, there will inevitably be holes in the roster. The model the Padres are following — think Kansas City, Houston, Chicago, Cleveland over the past five years — virtually requires the addition of higher-priced veterans to supplement a lower-priced homegrown core. And while there can be consternation regarding the passing over of Machado — a rare young talent available on the free agent market, and at a position of need for the Padres — he is not the last exceptionally gifted player that will be available within the Padres’ projected window. There will be other chances for the Padres to prove they are not the same old Padres. The free agent classes of 2019-20 and 20-21 are fairly loaded. Slated to join Arenado after the ’19 season are several players, including at least a half-dozen starting pitchers who could help vault the right team into contention. The class is at this point set to feature Xander Bogaerts, Gerrit Cole, Scooter Gennett, Cole Hamels, Miles Mikolas, Rick Porcello, Anthony Rendon, Chris Sale and Zach Wheeler. (It could also include San Diegan Stephen Strasburg.) At the top of the class after the ’20 season could be Trevor Bauer, Mookie Betts, Jacob deGrom, J.T. Realmuto and Mike Trout. George Springer, Jimmy Nelson and James Paxton are also due to be free agents then, and Carlos Carrasco could be. The class going into the 2022 season is potentially historic, with Javier Baez, Kris Bryant, Carlos Correa, Francisco Lindor and Noah Syndergaard among those scheduled to be free agents. The Padres would obviously have competition for these players. There is no guarantee they will sign any of them. But if they are to keep their word, it must be considered a guarantee they will try to sign some of them. 4 Look at Padres' books shows debt reduction has team in position to spend Kevin Acee It was perhaps the least-sexy and heretofore least-heralded of any signing in Padreshistory. But it may prove to be one of the most crucial. It involved, in fact, hundreds of signatures on thousands of pages of documents. The transaction the Padres consider one of the final pieces in the turning point of a franchise was not orchestrated by General Manager A.J. Preller but instead by Executive Chairman Ron Fowler, General Partner Peter Seidler, Chief Financial Officer Ronda Sedillo, President of Business Operations Erik Greupner and General Counsel Caroline Perry. The pivotal move this group pulled off was the re-financing of the burdensome debt the team inherited from previous owner John Moores. Gaining financial freedom has been at the crux of the Padres’ business model to this point under this ownership group, which is about to embark on its seventh full season in control. That was the key point that came out of a 90-minute meeting earlier this month with Fowler and Sedillo in which facets of the team’s finances were shared and spending decisions were explained to the Union-Tribune. The meeting — along with an hour-long follow-up with Sedillo — resulted from a request made to Fowler to open the Padres’ books in order to give the public an understanding of how the team has spent its money. 5 The caveat from the club was that many of the numbers shared herein had to be “general.” The Padres are a private company and one of 30 members of a greater private organization. One member does not have the prerogative to make public financial data Major League Baseball has not approved for release. Even without divulging many specific dollar amounts, a vivid picture is painted of a team intent on getting its house in order. With a $15 million cash call from ownership and a portion of the proceeds from a one-time MLB payment, the Padres paid a $28 million make-whole penalty as part of the 2017 refinance. That steep price was up to $40 million lower than the penalty would have been had it been paid sooner. The refinance allowed the Padres to decrease the percentage of their annual budget that goes to interest payments — from about 5 percent to about 2 percent, a difference of $8 million per year between 2015 ($12.6 million) and ’18 ($4.3 million) — and thus go forward drawing on their line of credit at a much lower interest rate with fewer restrictions. The refinanced debt also includes much lower minimum principal payments, which adds to the Padres’ financial flexibility. “It was ransom,” Fowler said. He referred to the terms and interest rate on the $130 million debts/bonds balance for Petco Park and the parkade construction.