MLB and the Union made their first sets of proposals last week about what they each want to see as negotiations begins on a new CBA.

It has been followed by verbal gunfire between Commissioner Rob Manfred and Union Chief Bruce Meyer.  All that is to be expected.

But let me fire my first shot in the arguments.  The Union needs to present the full story about the San Diego Padres if they are going to use them as an example that baseball does not need a salary cap.

Meyer told the Media…’Everyone should be the San Diego Padres’, referencing big payroll and being willing to pay the luxury tax.  

He left it at that.  He did not give the deep background.  He did not clarify the statement.  He did not tell the truth, the whole truth, and nothing but the truth.

Follow the story as I connect the dots:

I will give you a little deep background on this situation here with the Padres.

Yes they have built a pennant contender under the final group of years of Peter Seidler’s ownership.  But they have never reached the World Series, and have been to 1-NLCS.  The rivalry with the Dodgers has been spectacular for sure, but at a steep cost.

The attendance records are amazing, three straight record setting years at the gate.  They have raised their ticket prices (57%) in a 5-year span, and that does not include every type of increase for parking, food, gift shops.

As Seidler pushed his chips to the center of the table to try and reach the World Series, the team caved under a staggering debt load, so much that MLB made adjustments on debt load limits to help Seidler.

Over this 5-year run, he asked the minority owners for 2-major cash calls from those owners, which led to some to exit.

As the payroll rocketed into the (244M) range it incurred significant luxury tax penalties, which still exist today.

The reports I read are that the Feliciano ownership group inherits (300M) in debt and (150M) in cash call payments owed for the past transactions.

The team is tied to high money-extended contracts to aging players they cannot trade.  AJ Preller has traded the farm system away 4-times in an 11-year span.  He has won Trading Deadlines and the Winter meetings, but we are still waiting to sit in the Press Box in the World Series.

Back in the day, many  questioned ‘sustainability’ in what Team Seidler did, considering this is a market of (3.5M) total, in San Diego, somewhat up the I-15 corridor, and what little comes across the border from Mexico.  

They own the market because of the Spanos family decision to turn its back on 55-years of Chargers loyalty and move north.

Getting (3.23M) fans to come to the Corner of Tony & Trevor is amazing, but the Padres colors are Brown & Gold & Red Ink.  The window to be successful seems to be closing quick.

They have squeezed every penny they can out of this market, and are now attempting to make Petco an entertainment district in the off season.  But they only own 30% of Petco Park, have incurred yearly maintenance costs, and are feuding with a city that has a bad budget deficit.

And despite the great success of the team, they have been damaged by the loss of their (60M) regional TV contract, which nets them around (30M) now, much like all the other small market teams MLB has taken under their umbrella.

Big money in does not equal big money out with all their expenses.

So for the Union chief to say ‘everyone should be like San Diego’ is not a true statement, because their P&L sheet says something very different.

The Kroc family saved the team from moving to Washington.  John Moores and Larry Lucchino got this team to a World Series.  Peter Seidler made Petco a destination point with the hope there would be a Fall Classic date.

I don’t believe they need a salary cap in baseball.  The unique aspects of the offers this week should be a starting point in talks, from the increased Luxury Tax threshold, to the Pot-O-Gold TV pool, to a Floor to Spending mandate.

But not many markets ‘can be like San Diego, and incur that type of debt with hopes you can win and payoff.  They spent it, it has not gotten them the results they want.  There’s alot of red ink there.

Bruce Meyer-Union,  needs to tell the whole story, not his edited version

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