Risky Michael King contract details make it very clear why Padres got a bargain

A.J. Preller didn’t just bring Michael King back — he brought him back on a deal that reads like a masterclass in controlled chaos.

On paper, it’s a three-year, $75 million contract. In practice, it’s basically the Padres renting an ace one year at a time, with the “long-term” part only kicking in if King can’t (or shouldn’t) walk away.

Michael King’s risky options make the Padres’ bet look genius

There are player option years in both 2027 and 2028 for King. If he’s healthy, if the stuff looks like 2024 again, if the velocity bump is back and the shoulder/knee drama from 2025 is a distant memory — he’s almost certainly opting out and chasing the kind of mega-deal frontline starters get when they hit the market at the right time. The Padres get the production, and then they get out of the way.

This is made crystal clear by the 2026 structure. King is scheduled to make $5 million this year plus a portion of a $12 million signing bonus. For Competitive Balance Tax (CBT) purposes, the average annual value of this deal is approximately $9 million; however, if King were to opt-out after this season, the effective value of this contract for 2026 is $22 million. In other words: the Padres receive a Top-of-the-Rotation pitcher for what equates to Qualifying Offer Pricing without being on the hook for the associated risk for 5 to 6 years.

Then come the “break glass in case of…” years. In 2027, King has a $28 million player option with a $5 million buyout. In 2028, he has a $30 million player option with no buyout. If King’s velocity trends down, or his health falls apart, he can choose to stay and collect big money. If he’s thriving, he can choose to leave and cash in even bigger elsewhere. That’s player-friendly by design — and it’s exactly why this can still be a bargain for the Padres.

Because from San Diego’s perspective, the best-case outcome is simple: King shoves in 2026, opts out, and the Padres just bought an ace season at a rate that doesn’t wreck the payroll. The worst-case outcome is also simple: King can’t stay on the mound and he stays put — which is the risk baked into every starter contract, except this one didn’t require Preller to commit into the next decade.

Ultimately, it’s a well-designed gamble. King gets security and control. The Padres get upside without handcuffs. And if it works, San Diego bought themselves a rare offseason win.