SAN DIEGO (KGTV) – The San Diego Padres obtained a $50 million loan late in the 2023 season to help pay some of the team’s expenses, including its player payroll, according to The Athletic.
Citing sources familiar with the Padres’ finances, The Athletic first reported Wednesday that the team took out the loan in September “to address short-term cash flow issues.”
Per The Athletic: “MLB teams commonly tap into lines of credit to pay their bills, prompting some officials in the sport to suggest any concern should be tempered because the Padres were ultimately creditworthy enough to draw the loan. But other officials briefed on the team’s finances who were not authorized to speak publicly viewed the Padres’ situation as worrisome.”
The Athletic added: “But in September, the Padres had a third-party lender willing to loan the club $100 million. The team asked MLB for permission to receive close to the full $100 million, according to people briefed on the team’s finances. MLB gave the team permission to draw roughly $50 million, which the league deemed a sufficient amount for the team to cover its expenses.”
For the 2023 season, the Padres sold out 59 of its 81 games at Petco Park and drew a record 3.3 million fans.
While that meant record revenue, it apparently was not enough to cover expenses such as the team’s $250 million payroll -- the third-largest among Major League Baseball franchises.
As the season came to an end, multiple reports suggested the Padres were looking to reduce its payroll heading into the 2024 campaign.
Click here to read the full report by The Athletic (subscription-based)
