Padres Likely To Explore Extension Talks With Josh Hader, Juan Soto This Spring

The Padres achieved their top priority of the spring over the weekend, agreeing to an 11-year, $350MM deal with Manny Machado to keep him from retesting the free agent market next offseason. That came on the heels of a summer deal for Joe Musgrove and a recent extension with Yu Darvish.

Even after that series of transactions, the Friars have a handful of key players slated to hit the open market within the next two years. Last summer’s marquee deadline acquisitions — Josh Hader and Juan Soto — are both deep into their arbitration seasons. Jon Heyman of the New York Post writes that San Diego is likely to soon be in contact with both players’ camps to discuss possible extension frameworks. Dennis Lin of the Athletic similarly wrote this week the Friars were likely to take a run at extension talks with Soto.

There hasn’t been as much speculation regarding possible Hader negotiations. It’s not a surprise that president of baseball operations A.J. Preller and his front office plan to at least check in with the four-time All-Star, though. Hader is one season away from the open market and joins Blake Snell as the top impending free agents on the San Diego roster.

29 next month, Hader has a chance of securing a record-setting deal for a reliever. He owns a sterling 2.71 ERA with an eye-popping 43.2% strikeout rate over parts of six big league campaigns. No pitcher (minimum 200 innings) has punched out hitters at a higher rate since Hader came into the league. He’s three percentage points clear of second-place finisher Edwin Díaz. Hader also leads the league in SIERA (2.13) and swinging strike percentage (19.2%) over that stretch.

Díaz is second in both those categories as well. The Mets’ closer became the first reliever in league history to top the hundred million dollar mark this offseason, returning to Queens on a five-year, $102MM pact days before free agency opened. Díaz signed that deal in advance of his age-29 campaign and coming off one of the most dominant seasons by a closer in recent memory. He fanned more than half his opponents en route to a 1.31 ERA in 62 innings.

Hader, on the other hand, is coming off arguably the worst season of his career. He allowed more than five earned runs per nine, including a disappointing 7.31 mark in 19 appearances after the Padres acquired him from Milwaukee. Hader was a bit homer-prone early in the season with the Brewers. While he got that under control in San Diego, his walk rate jumped a few percentage points towards year’s end.

Despite that wobbly conclusion, Hader still enters extension negotiations with strong leverage. He’ll play the upcoming season on a hefty $14.1MM contract after avoiding arbitration. The lanky southpaw remains one of the sport’s highest-upside relief weapons. Even in his relative down year, Hader finished sixth among relievers who threw 50+ innings with a 37% strikeout rate. He placed 18th in swinging strike rate and averaged a personal-high 97.4 MPH on his sinker.

Hader’s youth and career résumé still position him as the favorite for the largest contract among relievers in next winter’s class. Díaz’s deal serves as a reference for the kind of money Hader could land if he had a vintage platform season. The New York righty had some ups and downs in the years leading up to 2022 — including a 5.59 ERA in 2019 and a fine but not overwhelming 3.45 mark in ’21 — before reaching new heights last season.

Considering his hefty arbitration salaries and proximity to free agency, Hader isn’t under pressure to sign for below-market rates this spring. He told Heyman he’d “definitely” be open to extension talks but didn’t offer any indication he’d take a hometown discount. “It’s a great place to be, but at the end of the day, business is business,” Hader said.

Locking up Soto would be an even more challenging endeavor, of course. The three-time Silver Slugger is playing this season on a $23MM arbitration contract. He’s likely to approach or top $30MM for his final arbitration season in 2024 and is trending towards free agency over the 2024-25 offseason. Soto would hit the market before his age-26 campaign and is generally expected to command the largest guarantee in league history (although the intervening potential free agency of Shohei Ohtani could first set a new high-water mark).

Soto has already declined an offer for what would’ve been the largest deal in MLB history. The Nationals reportedly offered a 15-year, $440MM pact last summer. Soto passed, leading Washington to pivot to trade discussions that’d eventually culminate in one of the biggest deadline deals ever. Soto’s performance in San Diego after the trade — .238/.388/.390 with more walks than strikeouts through 228 plate appearances — was disappointing by his massive standards but still markedly above average.

It stands to reason the Padres would at least have to beat the $440MM the Nats were prepared to offer in order to convince Soto to bypass a trip to the open market. How high he and his representatives are aiming isn’t clear, though Soto told Heyman his camp is “open to talking” with San Diego brass. However, he also added that “every player wants to get a try at free agency and a chance to decide where they want to go and where is best for their family.”

The Padres project for the third-highest luxury tax payroll in the majors this season, with Roster Resource forecasting them just under $275MM at present. Long-term deals for Machado, Fernando Tatis Jr., Xander Bogaerts, Musgrove, Darvish and Robert Suarez already have upwards of $130MM on the books through 2027. Tatis, Bogaerts and Machado alone will count for nearly $100MM annually between 2028-33. That’s plenty of future money tied up, though it also reinforces how willing owner Peter Seidler and the front office have been to commit to star talent.