Manfred unsure Padres can sustain huge payroll
PHOENIX – The economic disparity in MLB is starting to become an alarming concern among owners, with Commissioner Rob Manfred questioning whether teams like the San Diego Padres can possibly sustain their massive payroll in baseball’s fifth-smallest market.
“Look, I think there’s real positives in the Padres story,” Manfred said Wednesday at his spring training press conference. “I think the investment that the club has made in talent has allowed them to grow their revenue to be a payer (and not be a receiver) in the revenue system.
“The trick for the smaller markets has always been sustainability. Hats off to (Padres chairman) Peter Seidler. He’s made a massive financial commitment personally to make this all happen.
“The question becomes, ‘How long can you continue to do that? What happens when you have to go through a rebuild?’ But they have done a really, really good job of capitalizing on their talent to drive their revenue.”
Manfred, in an interview with USA TODAY Sports after the press conference, said the Padres already are assured to lose money this season with a payroll of about $250 million – third largest in the game. The New York Mets, who will pay nearly $500 in payroll and luxury tax penalties this season, are expected to lose the most money among the 30 clubs.
There has been $3.7 billion spent in free agency this offseason, with seven teams spending $2.6 billion.
“Look, you can’t look at what happened in the offseason and not be concerned about the disparity,” Manfred said. “It’s a topic of conversation. The Padres are going to lose money, but the question is what are you going to do next.”
What will happen with MLB teams airing on Diamond Sports networks?
The hottest topic of conversation at Manfred’s press conference was the future of Diamond Sports, which owns 19 regional cable networks involving 14 MLB teams. The company entered a 30day grace period with creditors Wednesday after missing a scheduled interest payment of $140 million. There’s about $1 billion at stake for MLB teams.
If Diamond is unable to broadcast games, Manfred said teams will terminate their agreements, giving teams the right to broadcast on traditional and digital cable, with the help of MLB Network.
“We are prepared, no matter what happens, to make sure the games are available to fans in local markets . ... Our hope is that Diamond figures a way to pay us,” Manfred said.
What about MLB’s blackout restrictions?
MLB will also continue trying to resolve its blackout restrictions throughout the country, with fans complaining they can’t watch all of the games they desire.
“I think in the last couple of years if you give me one word that is Central Baseball’s No. 1 priority,” Manfred said, “that word is reach. Blackouts are the kind of opposite side of the coin of reach. We need to deliver product to fans who want to watch on platforms that they customarily use at a realistic price. That is our No. 1 priority.”
Manfred says MLB still evaluating automatic strike zone
No timetable has been set to implement an automatic strike zone.
“We’re still in an evaluation mode of that,” Manfred said. “We had a lot of change coming this year. We’ve got to see how all that takes.”
‘Clubs enjoy’ the ghost runner rule
On Monday, MLB announced that it is retaining the automatic runner at second base in extra innings.
“The clubs enjoy the rule,” Manfred said. “There’s really a lot of consensus in the game that it is a good rule. It does bring focus at the end of the game.”
New rules will enhance athleticism of players, Manfred says
Enlarged bases, pitch clocks and a ban on defensive shifts are major rule changes being implemented for the 2023 season.
“We listen carefully to our fans on this topic over a long period of time. We think the changes are going to produce a crisp, exciting game,” Manfred said. “I think the athleticism of our great athletes will shine through.”