Jeff Passan subtly confirmed in an ESPN article that the San Diego Padres and New York Yankees are discussing a trade.

The sports giant’s senior baseball writer wrote that the potential trade involves sending three-time batting champion Luis Arraex to New York. A return for the Padres was not mentioned.

The Padres are again looking to spend frugally ahead of the 2025 MLB season, just as they did last year. The Padres did just that by sending Juan Soto to the Yankees. Soto earned $31 million in his final year of arbitration. The Padres received five players in return, including pitching standout Michael King.

The Yankees have continued to discuss a Luis Arraez trade with the Padres, per @JeffPassan

Passan also confirms that the Yankees have looked into Gavin Lux for second base as well pic.twitter.com/WGlqSTTIDF

— Talkin’ Yanks (@TalkinYanks) January 6, 2025

Arraez is expected to earn $14 million in his final year of arbitration. According to reports, San Diego is looking to maintain the same payroll as in 2024 ($169 million). This remains the objective while general manager AJ Preller also has to fill roster holes. Preller needs two reliable starting pitchers and a starting left fielder. Juricson Profar is a free agent and won’t be so cheap after his stellar 2024 campaign. Joe Musgrove will miss most, if not all, of the 2025 season. The rest of the NL West has improved, so fielding a competitive team remains a strong priority.

Trading Arraez moves the Padres closer to meeting both of these objectives. It takes $14 million off the books, and the right return improves the team. The only question is who the Yankees would be willing to send back to San Diego.

Padres trade for a Yankees pitcher

The Yankees added left-hander Max Fried to their already dominant rotation. Their current starters are expected to hang around for a while. The Yankees have a few starting candidates in their farm system they could part with. One of them is Will Warren.

The 24-year-old right-hander debuted for the Yankees in 2024. He started five games, posting a 10.32 ERA and an astoundingly unlucky .491 BABIP. Warren throws his fastball in the 92-95 mph range, though it can reach as fast as 97. His repertoire also includes an above-average sweeper and heavy sinker. Warren finished his short 2025 campaign with an 11.91 K/9. That came with a 3.91 BB/9 and 1.99 HR/9.

Moving to San Diego means Warren would have a chance to compete for the starting rotation in Spring Training. It also allows him to improve under the tutelage of Jose Niebla. For the Padres, it means keeping their payroll closer to the $169 million range. Warren is still in the pre-arbitration stage of his career.

Or an outfielder

Another Yankees player still in the pre-arbitration stage is Jasson Dominguez. The Yankees’ No. 1 prospect appeared in 19 games in 2024. He drew walks (16.4 BB%) but also piled up the strikeouts (28.4 K%). Dominguez would bring a combination of power and speed to the Padres. He would fit right in with Jackson Merrill and Fernando Tatis, Jr. His solid-to-plus arm strength could bode well in a corner outfield spot.

It’s unclear if the Yankees would be willing to trade their No. 1 prospect for Arraez. Juan Soto is now with the New York Mets, leaving right field open on the Yankees roster. In addition, the Padres could be more inclined to bring Profar back into the fold.

Nothing may happen 

The Padres and Yankees are only discussing a trade at this point. Gleyber Torres left the Yankees in free agency, and they need a starting second baseman. Arraez consistently makes contact and gets on base. However, his base running ability and defense aren’t much to write home about. The Yankees could likely include Dominguez in their long-term plans, and he is their best prospect. Trading Warren makes more sense if they’re willing to take on at least one year of Arraez.

The Padres haven’t made any moves up to this point in the offseason. For now, they’re focused on Japanese pitcher Roki Sasaki. If Sasaki picks a team other than the Padres, Preller will have to scramble to address the rotation. Either way, moves will be made.

Mike Ursery

Mike is the sports editor for the Fayette Advertiser, and has been with East Village Times since 2015. His work has appeared on Bleacher Report. He is an avid Padres fan who is keeping the faith and trusting the process.