The Padres announced Friday that they’ve avoided arbitration with right-hander Michael King, coming to terms on a one-year deal with a mutual option for the 2026 season. Kevin Acee of the San Diego Union-Tribune reports that King will be guaranteed $7.75MM, taking the form of a $3MM signing bonus, just a $1MM salary, and a $3.75MM buyout on a $15MM mutual option. King can boost his guarantee to $8MM, as the contract includes a $50K bonus for reaching 20 starts and bonuses of $100K for reaching 25 and 28 starts. The structure of the deal will perhaps free up a bit of 2025 budget for a payroll-crunched Padres club. King and his reps at Excel Sports Management had filed for an $8.8MM salary. The Padres countered at $7.325MM.
While the arrangement nominally extends the window of control over King, mutual options are at best a technicality; they’re almost never picked up by both sides. The player either outperforms the option value and declines in favor of a trip to free agency, or he underperforms and/or sustains an injury that prompts the team to decline and move on. It’s been more than 10 years since two parties agreed to exercise their end of a mutual option (Matt Belisle, Rockies in Nov. 2013).
Still, by including a mutual option on the contract, the Padres technically stick to the near-leaguewide file-and-trial mantra, wherein teams cut off negotiation on one-year deals once salary figures are exchanged. King’s deal is, of course, a one-year contract — but the presence of the option renders it moot for future arbitration negotiations. Even though there’s virtually no chance of the option being exercised, its mere presence means that King’s agreement cannot be used as a comp (for the Padres or for other clubs) when negotiating contracts with players who are comparable in terms of statistics or service time.
King, 29 (30 in May), was acquired from the Yankees as one of five players in last season’s Juan Soto blockbuster with the Yankees. He’d been primarily a reliever prior to his inclusion in that swap, though a terrific nine-start stretch late in the 2023 season had thrust him into the Yankees’ rotation plans. Instead, he had his first full season as a starter in San Diego rather than the Bronx, and the results were outstanding. In a career-high 173 2/3 frames, King turned in a 2.95 ERA with a 27.7% strikeout rate, an 8.7% walk rate and a 40.4% ground-ball rate. He now sports a 2.91 ERA in his past 392 2/3 innings, spanning the 2021-24 seasons.
As a free agent following the season, King’s name has floated around the rumor circuit for a Padres club that has had payroll questions all offseason. San Diego hopes to contend in 2025, so the only way they’d move King (or rotationmate and fellow pending free agent Dylan Cease) would be if the return included an immediate rotation replacement and additional big league-ready talent. Teams in search of rotation help will continue to inquire, as it seems inevitable that the Padres will eventually make some kind trade to free up payroll space and simultaneously plug some roster holes.
boom
Preller batting 1.000 AAH
(Avoiding Arbitration Hearings)
but this last one required using kung fu on Kutsenda and the bros, King’s agent is picking up the bodies now
Totally agree. Preller working his mojo on this. Kudos AJ!
What bodies?!?
¯\_(ツ)_/¯
If I were King -“If I were King” I like the sound of that, but no, I’m just the Court Jester, but I digress – I wouldn’t be going on any shopping spree’s until I was sure the check had cleared the bank. Ahahahahaha!
This week, we have had posts on Pressly, Elvis and the King.
I saw him dressed in black riding a bicycle on the PCT this morning
I’m just glad it got done. Next year Hosmer’s albatross comes off the books.
See, all the damn Padre fans freaking out……lol
Next article a trade, now that teams know what he’s getting paid?
For the record, I don’t think they should trade either pitcher….
Blow us away, Clip, and the King could be returned! Short of a windfall, it ain’t happening. I think.
Gwynning, we will trade you one new-like Juan Soto………… in-game jersey, AND an elite(ish) starting pitcher in Marcus Stroman. Now we know you guys are taking us to the cleaners, but it’s bound to happen at some point.
Make Stro free, add a real-life Martian and throw-in a Hampton (Chase, not a home) and I’ll reluctantly agree in principle.
Okay, a fair compromise: Stroman, a Soto jersey, a SIGNED Clint Frazier baseball card, and a game-worn David Wells jock strap?
Ohhh sooo hotttt… when does this offer expire? We’re gunna hafta think about it, of course. I got Miami on line 2, call us back tomorrow Clip!
🙂
Of all those things you included in the deal i feel like Stroman is the one they wouldn’t want…
SD probably still has some game work straps from DW as a Padre.
unlaundered?
Stroman? “Elite(ish)?” Not hardly!
Doesn’t hurt to check the market.
Always listen, right? Agreed Lordy.
The Padres don’t have the money to round out the rest of their team that’s why they are talking about trading Cease and King.
The padres really don’t need much at this point.
They signed Diaz so they are less likely to add another catcher. The only position player hole they have is LF. They can fill that pretty easily internally or sign a cheap vet.
They could use a DH bat but they could do the same with filling that spot. We also don’t know what their total budget is. Most likely they could adds some vets then start the season. Can always trade out at the deadline if thknhs don’t go their way.
There is a reason the price in Cease has been so high. They will keep him if it’s not met.
The Padres need 2 more quality everyday players. And they could use more starter depth.
If they don’t trade Cease where does the money come from to sign the everyday players?
Last season the Padres filled LF with a $1 million Profar and did so after Spring Training had started. I am not worried. Are you?
Shildt said he doesn’t want a full-time DH. He wants to leave the position open to rotate players through to give them a day off in the field. I don’t think the Padres have any intention of signing someone who is just a bat and does not have positional flexibility,
Rosario is going to finally get his shot coming off the bench, and he has a good bat to go along with good defense at multiple positions.
Padres would like some upgrades.
At the same time they have a darn good team as is.
I’m not saying they won’t make trades. I actually expect them to make trades. The difference is it won’t be out of desperation.
Padres know if they trade cease he will be extremely difficult to replace. Suarez is a little easier to replace. They also could move Wandy Peralta, perhaps the Braves want him like Carp last year.
Padres could sign a guy like David Peralta for dirt cheap and plug him in left.
The Padres need a LF. Last season that LF was signed for $1 million after camp opened. That is the only need they have today. They have a better team today than they did when spring training opened last season. Also, last season the rumors were that the Padres were in an even greater payroll crunch and they added Peralta, Cease, and Profar after spring training started.
Peralta is old and no longer good. And they need a DH or 1b too.
I heard an insider (maybe Morosi ) saying Preller was looking to add a high level prospect to a Bogaerts trade deal. Maybe the high price has something to do with that.
No, they don’t need a DH or 1B. Shildt has already said that he doesn’t want a full-time DH because he wants to rotate position players through DH to give them a day off in the field. Arraez will be at 1B.
No, it was that idiot, Jim Bowden who said that about Xander, he knows nothing.
Seems smarter to hold onto him now and if needed swing at the deadline.
If they trade him or Cease they have to sign Trevor Bauer to replace them.
Bauer is under contract, he’s NPBing again in ’25. Your trollish obsession with him is beyond weird, even for the Dodger fan that you are.
He’s at the right price…
I definitely think Padres should sign Bauer
Just let him wink at every batter he faces to induce some psychological war fare
“why is he winking at me?” what does it mean? oh shoot swing!”
Strike one
That’s pretty nifty
The time is now, get this roster in order, AJ!!!
Seems like the entire purpose of that mutual option is to push payroll from 2025 on to 2026. Thats not a normal thing to do, especially for a team that has done almost nothing all offseason.
Hope it was fun while it lasted San Diego.
They did that because they have a ton of money coming off the books next year and it frees up
Money for this year.
Actually really smart.
Yeah it’s smart. But buy now pay later is something poor people do. Of course they have money coming off the books next year they have tons of good players who are soon to be free agents. If they want to sign them they will need money to do that. Now they have less money in 2026 to do that.
The mutual option has no bearing at all on next year since it won’t be picked up. The point of the mutual option was to avoid arbitration, since now the number King and the Pads settled on for this year cannot be used as a comp for similar players in the league.
The team gets closer to the number they want, the player gets to settle for that number without it being used as a comp for other players and agents, and it sets the annual floor for King’s services in his new contract negotiations.
The point of the mutual option is to push salary from 2025 on to 2026.
Yeah they will push 3.5m to next year. Just like they are eating 2m of Kim’s opt out this year.
So the most they will pay king is 5.5m this season. This may even have brought the padres below the tax line.
I bet the Padres don’t add more than 5 million to their 2025 payroll at this point.
What do you think?
If that was the point, they failed. The buyout counts for 2025, not 2026.
The Padres didn’t drop their payroll at all. All guaranteed money is counted in 2025, not pushed into 2026. The buyout on the mutual option is guaranteed money. It will be paid to the player this year unless the mutual option is picked up in November.
King is guaranteed $7.75 million which is what he will count toward the payroll in 2025 unless the option is picked up. That is higher than the $7.325 million number the Padres submitted in arbitration. If anything, the Padres increased their payroll by settling with King ahead of time.
Diaz is guaranteed $3.5 million which is what he will count towards the payroll unless the option is picked up.
Simm, buyouts count towards the CBT of the final season they played for the team. In this case both King and Diaz’s buyout will be paid in November of this year and count toward 2025 payroll.
Because of that it doesn’t affect their CBT payroll numbers. Cots Baseball Contracts is saying King’s signing knocked $276k off their projections. The Padres are still at around $249.25 million in CBT payroll, $8+ million over the CBT threshold.
Hmm, pretty sure I saw Kim’s buyout include on the 2025 payroll.
Today moving forward they don’t add more than 5 million to the payroll.
Yeah Kim’s buyout counts toward the Padres 2025 payroll/luxury tax figure and King’s buyout on the 2026 mutual option will count towards the 2026 payroll/luxury tax.
fangraphs.com/roster-resource/payroll/padres
Dodgers bought now pay later in 680 of Ohtani’s 700 million. Does that make them poor?
The Dodgers did that so they could spend more.
The Padres are doing this so they can spend less.
A mutual option for 2026? Clearly the Padres will now trade King, there’s the proof! Now where’s that trade article?
King will stay thats why they did this financial hocus pocus with the 2026 option. Cease is the guy who will be dealt.
I personally think they should trade Arraez and Suarez and invest that money on another starter and left fielder.
Yeah i mean even if you get very little back for Arraez you would have the money to spend. He seems like a luxury a team like the Padres doesn’t need. And Suarez could be replaced the Padres have a deep bullpen.
So with all the finagling of the numbers, what tax number does King count as in 2025? It might be technically legal to do this, but it sure doesn’t feel right. Tax levels, salary caps, and all other things exist to keep a level playing field for all involved. For some, they seem to exist only to find ways around them.
Luxury tax hit is 7.75 mill the agreed to amount
No it’s not. 3.5m will be pushed to next season. At least that’s what I’ve seen happen on opt outs. So they will take a 7.75m tax hit but not all in 2025.
spotrac.com/mlb/player/_/id/28931/michael-king
Thats what theyre reporting
His money comes off next year and gives flexibility this year.
All guaranteed money, and the buyout is considered guaranteed, counts toward 2025 calculations. So King counts $7.75 million to the Padres 2025 payroll. If both the Padres and King exercise the option come November, the CBT calculation would include all money earned in 2025-2026.
The Padres have a huge amount of money coming off the books after this season, so if they want King around long-term and he wants to stay then an extension after the season makes the most sense because that won’t affect the 2025 CBT calculation.
Isn’t Aramis Ramirez in 2015 a more recent example of a mutual option being exercised?
Good catch Sretcher. It’s still been 10 years.
Yeah, they basically never get picked up. It just got me looking through all examples and I saw that one was slightly more recent than Belisle
I’m thinking of paying the stupid paywall fee if they promise never to write “file and trial” again.
King’s a good dude. Glad to have him on the team.
With this signing and the Diaz signing the Padres added a player and actually dropped their projected payroll for 2025 by over 2 million.
Seems like an Arraez, Cease or Suarez trade is coming soon.
AJ Preller and Padres getting the preliminaries out of the way, dotting the “I”‘a and crossing the “T”;s.
Between now and the end of Spring Training,
Cy Young Contender RHSP Dylan Cease
AND
NL All Star Closer Robert Suarez
will be dealt in separate blockbuster deals:
I can see the Padres landing:
1) 2 young starters
2) C/1B/DH
3) OF who can play LF, CF, RF
4) Beefing up the bench with versatile defenders who can hit
5) ALSO, Padres will make a “dark horse” surprising, under the radar deal
that uses some of the prospect capital in the
minors and that acquired in deals
to land a veteran mid rotation stater
with a least 2 years club control .
Note Well:
C Ethan Salas
AND
SS Leonaldis DeVries
ARE UNTOUCHABLE!!!
AJ Preller and the Padres will surprise a lot of people, once again, by playing playoffs caliber baseball and
securing at least a Wild Card in the 2025 NL playoffs.
Manager Mike Schildt will be in Contention for Manager of the Year in the NL West.
SFanooo. I enjoy your posts, don’t always agree with everything, but you’re clearly a fan I’d offer a beer. I’m not so sure they part with Cease because I doubt there is a contender who will part with ML-ready replacements who helps in 2025. It would take a perfect deal and those aren’t often available. But Suarez is a real possibility. That deal if it happens might not happen until ST when Preller gets a close look at some of the RP options and possible transitions of 1 or 2 RPs to SPs.
There’s a few teams with excess starting pitching who would take a good reliever or bat. So I could see them trading one of the 2 of Suarez or Arraez,for a 3 or 4 starter. Then maybe Cease for a Kjersted/Mountcastle type combo.
My theory is that this framework was on place before the Elias Diaz number was made, and that Preller may be given a hard order to not make the payroll go up. He got this deal to free up 3.5 mil off this years books compared to the padres arb number, and that’s what Diaz got.
The bros. Need to allow the GM to do his job.
Diaz actually has a 2026 option too so they actually saved money based on the projected salaries.
This is a sign they are in real financial trouble.
Either way these deals freed up some
Money.
Next deal could be trading Peralta and a prospect then giving the money saved to the other Peralta to play in left/dh.
Simm, no they didn’t. Buyouts count towards this year because they are guaranteed, and they are paid when the option is not picked up in November. There was no savings by doing this.
Well at the very least it freed up money vs king winning arb.
The Bros are not involved in the Padres decision making yet. Its looking like they may never be.
Can someone explain how a buyout of a mutual option works? Seems like if King says no to his side of the option, there is nothing for the Padres to buy out of, so King isn’t really guaranteed the buyout amount — he only gets it if he says yes on his side of the option and the Padres say no on their side.
It’s basically worded as if either side opts out. It’s a guarantee sum.
I’ll admit that up until last off season I was not much of an AJ Preller fan, but the work he has put in the last couple off seasons is undeniable. Clearly ownership is leaving him no wiggle room on budget and thus far, he is fielding a competitive team anyway.
I’m sort of curious why they did not use this 2026 option/ buyout strategy with Arraez too. His Arb number is like $14m. They could’ve put $5m or so of that into a buyout on 2026.
The buyout is paid at the end of this season when the options are not exercised and count towards this season. It doesn’t save the Padres any money this year.
Someone tell BITA that the Padres didn’t drop their payroll at all. All guaranteed money is counted in 2025, not pushed into 2026. The buyout on the mutual option is guaranteed money. It will be paid to the player this year unless the mutual option is picked up in November.
King is guaranteed $7.75 million which is what he will count toward the payroll in 2025 unless the option is picked up. That is higher than the $7.325 million number the Padres submitted in arbitration. If anything, the Padres increased their payroll by settling with King ahead of time.
Diaz is guaranteed $3.5 million which is what he will count towards the payroll unless the option is picked up.
Warning to whomever tells BITA: prepare for an idiotic respone! >.<
I just told Andrew Friedman and Nez Balelo that only poor people buy now and pay later
I hate when those 2 wahoos grift their way onto my teetime… I just secretly put everything on their tab as “compensation”
What? No trade bonus or option automatically triggered?