A.J. Preller Extension Talks Expected as Padres Enter Next Phase of Offseason

With the offseason’s hot stove cooling down, the Padres organization now has time to work on an extension for current general manager A.J. Preller. In theory, you would expect the long-tenured GM to need a successful 2026 season to earn an extension, but there are reasons on both sides to get a deal done beforehand. As of now, his contract is set to expire after this season, leaving an opening at GM.

Despite the unclear status of his contract negotiations, Preller has insisted all offseason that he hopes to remain in San Diego and expects to work on an extension once the offseason concludes.

It’s understandable why Preller would want an extension sooner rather than later, though he likely would have been in a stronger negotiating position had this winter not been so difficult for the Padres.

With the off-season wrapping up its now or never for a Preller extension. It’s hard to run a team on a one year deal and he’ll certainly want some financial security before a new ownership takes over.
— Gregory Spicer (@Greg_Spicer_) February 8, 2026

After years of being one of the most aggressive teams in free agency and at trade deadlines, the Padres finally hit their payroll cap and emptied much of their farm system. With no money to spend in free agency and limited prospects to offer in trades, San Diego did far more subtracting than adding this offseason.

The team saw All-Stars Ryan O’Hearn, Luis Arraez, Robert Suarez, Dylan Cease and Jose Iglesias depart. In response, they added Korean star Sung-Mon Song, platoon bat Miguel Andujar and re-signed starter Michael King. There is still time for moves to be made, as the Padres remain active in free agency and on the trade market.

Preller’s history of aggressiveness may be coming back to bite the organization without a championship to show for it, but he has also done plenty of good for the franchise. It’s in his best interest to get an extension done as soon as possible - if the Padres are willing to give him one.

A new owner is going to buy the team, and in sports, new ownership often wants to make an immediate mark. The easiest way to do that is by bringing in its own general manager. Preller would benefit from getting an extension done before a sale to lock in financial security beyond the current regime.

It’s also difficult to run a team on a one-year deal. The famous Moneyball quote from actor Philip Seymour Hoffman, who played Athletics manager Art Howe, states:

“I can’t manage this team under a one-year contract.”

He’s not wrong. How can Preller be expected to make long-term decisions for the franchise if he doesn’t know whether he’ll be around to see them pay off? Without an extension, he could be incentivized to go all-in on a 2026 championship, even if it means sacrificing more young assets in a final push to earn a new deal.

AJ Preller said that timing for him not having a contract extension is party on him, as he's been focused on building the roster. That's all he's been focused on. Ultimately, AJ said he expects a deal to get done and he's looking forward to continue building this team.
— 97.3 The Fan (@973TheFanSD) January 31, 2026

It would certainly make Preller’s life easier to lock in a new contract, but the Padres have not been as vocal about their urgency to get a deal done. Preller built much of this roster under the assumption of consistent financial backing from the late Peter Seidler, who turned the Padres into one of the highest-spending franchises in baseball. Since Seidler’s brothers took over, the Padres have struggled to build an NLCS-caliber roster - and have further thinned the farm system in the process.

Because of the uncertainty surrounding future ownership and the state of the minor leagues, current ownership may ultimately decide against extending Preller. If they do move forward with a deal, however, it would signal a shift toward finally reinvesting in the organization’s future.

The best-case scenario would involve a new owner injecting more money into the roster while extending Preller. That would allow him to focus on developing internal talent while still spending in free agency around win-now stars such as Fernando Tatis Jr. and Manny Machado.

If Preller fails to get extended, or if new ownership proves unable to compete financially, San Diego will be left in a very difficult position.