Manny Machado, the star third baseman for the San Diego Padres, recently made headlines with his candid comments about his decision to sign with San Diego in 2019 and to opt out of his contract after the 2023 season. In an appearance on the Ben & Woods show on 97.3 The Fan, Machado used a relatable analogy to explain his reasoning:
“But at the end of the day, business is business. And I think it wouldn’t be in my interest if I—you know, the market has changed in five years. In one year, it’s changed. You see it in life; you see it in the real world. Taxes. Inflation. You have to take it all in. Let’s take away baseball. The price of eggs is how much? It’s just life. Things change, a lot of things change. Ultimately, the markets change, right?”
This should not be a surprise as it dates back to his days in Baltimore. Machado has never been shy about speaking his mind and believing in his value, nor his feelings about pursuing the most significant financial package during his contract negotiations.
Machado’s Journey: From Dodgers to Padres
Machado’s path to the Padres was not direct. The Orioles traded Machado to the Los Angeles Dodgers in July 2018, acquiring outfielder Yusniel Díaz, right-hander Dean Kremer, third baseman Rylan Bannon, infielder Breyvic Valera and right-handed reliever Zach Pop. The Dodgers, known for their financial prowess, were expected to make a solid push to retain the All-Star infielder that offseason; however, the San Diego Padres swooped in with a more lucrative offer. San Diego knew California’s high tax rate would partly handicap the Padres’ pursuit of Machado. To compensate for the state’s steep taxes and entice Machado away from other suitors, the Padres offered a 10-year, $300 million contract. At the time, this deal tied Machado with Miguel Cabrera for the highest average annual salary in Major League Baseball.
The Changing MLB Landscape
Since Machado signed his contract with the Padres in February 2019, the financial landscape of MLB has shifted dramatically. Several players have signed free-agent contracts worth $300 million, including Corey Seager, Gerrit Cole, Aaron Judge, and Trea Turner. Star players like Mike Trout, Mookie Betts, and Francisco Lindor have signed massive extensions with their teams, further elevating the market for top talent. The league’s financial health has also improved, with MLB setting a record of $10.8 billion in revenue last season, indicating teams’ increased financial capabilities.
Machado’s Market Value
Several factors drive Machado’s decision to opt out. His performance has been exceptional, finishing in the top three in NL MVP voting twice in the past three seasons. As a premium third baseman, Machado plays a highly valued position. At 31, he is still in his prime and could secure one more long-term contract.
While it’s unlikely Machado will double his salary to match the inflation rate of eggs, his business acumen suggests he recognizes the potential for a significant pay increase in the current market. As teams spend aggressively on top talent, Machado’s decision to test the free-agent waters again demonstrates his understanding of baseball’s evolving financial landscape and his value within it.
