San Diego Strikes Again With 11-Year Extension for Manny Machado

The speculation about Padres third baseman Manny Machado exercising his opt-out clause after the 2023 season came to a stunning conclusion over the weekend, as club and superstar agreed to an 11-year, $350 million contract. The new deal rips up the final six years of the contract that Machado signed before the 2019 season.

If nothing else, tally one team that is apparently not concerned with the short-term hiccups in baseball’s revenues due to the Bally/Diamond bankruptcy; the Padres are one of the teams with a regional sports network (RSN) that is affected. If revenues are up in the air, they have made sure that third base certainly is not, following an extension that will also keep Yu Darvish in town for all or most of the rest of his career. The Padres aren’t trying to be the Rays, the scrappy underdogs that hunt very large game with a sharpened stick; they’re trying to go toe-to-toe with the Dodgers at their own game. This is less David versus Goliath and more M. Bison versus palette-swapped M. Bison in “Street Fighter II.”

My colleague Jay Jaffe covered a lot of the particulars about the Manny situation in San Diego last week, so I’m going to skip the exposition. I think Jay and I both underestimated just how motivated the Padres were to ensure Machado stayed in mustard-and-brown for a long time. We had a ZiPS projection in that piece, but now that we know where he will play and for how long, I ran a new projection.

Let’s just say that ZiPS isn’t overly enthusiastic about the contract, valuing Machado’s future services at $181 million over 11 years. He is a superstar, but there’s a big difference between signing a player before their age-26 season and their age-30 season. Just to illustrate, here’s the projection a second time, but with Machado the age he was when he signed his initial deal with the Friars.

That’s a valuation over $400 million, a notable difference! The sad truth is that even for superstars, the 30s are more often than not a tale of significant decline. Just to illustrate, here are all non-active position players worth between 41–51 WAR through age 29 (Machado is at 46.6) and how they fared in their 30s.

ZiPS actually has Machado aging slightly better than the average player in this group, with an additional three WAR over about 1,000 more plate appearances. The three active players at the end of their careers that I chopped off wouldn’t make this any sunnier a list; none of Miguel Cabrera, Evan Longoria, or Andrew McCutchen have aged particularly well.

Some of the decreased projection is due to the fact that Machado is no longer a defensive star at third base as he was earlier in his career. Defense doesn’t decline as rapidly as people think at the non-speed positions, and the fact that Nolan Arenado’s glove has stayed quite steady gives him kind of a fallback position if his bat declines. Machado no longer has that luxury.

Despite my grumpiness as an analyst who inevitably has to play devil’s advocate, let me emphasize that I’m certainly not shedding any tears for the pocketbooks of team ownership. While speculating what the Padres’ analytics gang has for Machado over the next 11 years would be a wild-ass guess, I know enough to know that ZiPS does not generally give projections that are grossly different from ones that teams run internally. The team’s ownership group, led by Peter Seidler, was no doubt given all the information the team had internally of this type and is also aware of the revenue situation, his personal net worth, and the fact that the big jump in baseball’s luxury tax threshold from 2021 to ’22 is much, much smaller in subsequent seasons of the CBA. They take this risk with the eyes wide open.

Even as a risk, it’s hard to dislike this signing as a fan of baseball. It’s refreshing to see owners who want to keep their teams together, who prioritize putting the best team on the field right now, and who directly challenge another of baseball’s elite franchises. Baseball’s system of playoffs and revenue sharing incentivizes just sneaking into the postseason every year, and if I worked for a team, I’d recommend the same cynical view that is prevalent among franchises. So it’s nice to see a team with a little more ambition, one willing to be happy with the increases in team value rather than also requiring a healthy profit every season to boot.

There remains a big unanswered question in the form of Juan Soto. Keeping him may cost $40 million a year, and I now have to wonder just how far San Diego’s willingness to spend will stretch. Are the Padres really willing to already be at $200 million for 2025–27 with two starting pitchers under contract? The farm system has nowhere near the depth that it had a few years ago, after all; ZiPS had no Padres prospects in its Top 100. While our prospect team placed two, the farm system ranked 26th at the end of last year, and though the new rankings aren’t out yet, I can’t imagine they’ve moved up a ton. But we’ll worry about Soto later.

By signing Machado, the Padres have signaled that they’re here to win now, and that the current aggressive spending isn’t just the apogee between the fire sales that have peppered San Diego’s franchise history. They’re going after the Dodgers on their own turf, and that’s pretty cool. Now the win now team just has to do the hard part and actually win now.