Padres Are Facing a Season in the Red : Baseball: With payroll over $23 million, team needs to draw 2.1 million fans to break even.

The Padres’ player payroll this season is expected to exceed $23 million, according to salary figures obtained by The Times, leaving the organization in danger of losing money for only the second time in the past eight years.

The Padres, according to the salaries gathered from sources in the Major League Players Assn. and Player Relations Committee, will pay a record seven players at least $1.65 million this season. In all, they’ll have 13 players making at least $700,000, including second baseman Marty Barrett and pitcher Atlee Hammaker, each of whom will receive the bulk of their money from their former teams.

Anticipating their first non-profitable year since 1987, the Padres have determined that they’ll need to draw at least 2.1 million fans to break even. They have surpassed 2 million in attendance only once once in the 22-year history of the franchise.

Making it more difficult, the Padres will have to rely on a strong walk-up crowd this season. They have sold the equivalent of about 9,000 full season tickets--15% behind last year’s pace when they drew 1,856,395 for the season.

“It’s a very difficult situation because we’re in a small market,” said Tom Werner, Padre chairman. “We can’t expect to generate the kind of revenue teams like the Dodgers can.

“I’m obviously concerned with these escalating salaries, because there just is not enough revenue to offset that. I really thought that player salaries were going to de-escalate given the fact that clubs were hit with large penalties for collusion, and given the fact that the economics are not what they used to be.

“But the winter proved me wrong.”

Although the Padres spent a modest $5 million in the free-agent market during the off-season when they acquired reliever Larry Andersen and third baseman Jim Presley, they were hit hard by appeasing their own players, paying $2.4 million alone in signing bonuses.

They provided first baseman Fred McGriff with the largest contract in franchise history, guaranteeing him $15.25 million over four years, with an option year in 1995 for $4.25 million. Right fielder Tony Gwynn was furnished a three-year, $12.25 million extension. And Bruce Hurst received a two-year, $6.4 million extension, with a $3 million option in 1994.

You think times have changed? Take a look. The money that McGriff, Gwynn and Hurst will receive this year, including their signing bonuses, is $8.65 million.

The entire Padre payroll of 1985, coming off a season in which they won the National League pennant, was $8.77 million.

“Even though it may be a steep cost now,” said Joe McIlvaine, Padre general manager, “we felt it was a good financial gamble.”

Considering that McGriff and Gwynn each were eligible for free agency at the end of the 1992 season, McIlvaine believed it would be less expensive to sign them up now than wait until all 26 teams and two expansion franchises, joined in the bidding. And although Hurst was not eligible for free agency until after 1993, the way McIlvaine figured it, Hurst could be making much more at the arbitration table.

“Basically, it’s incumbent upon you to treat the owners’ money,” McIlvaine said, “just as if it were your own money.”

The Padres, according to a source in the players association, are expected to have the seventh-highest payroll in the National League this season, and the 13th-highest in the major leagues. The Dodgers, San Francisco Giants and Cincinnati Reds each will have higher payrolls in the National League West.

“I believe you can be competitive with teams that have a higher payroll,” Werner said, “but you have to be innovative, and that’s what we’re trying to do now. We’ve changed the infrastructure of the organization when we hired Joe, and it’s incumbent upon us to build as strong a minor-league system as possible.

“It’s going to be awfully important now to build from within.”

The Padres immediately began adhering to their new philosophy. Instead of attempting to acquire at least one free-agent outfielder during the winter, they are giving a starting opportunity to Shawn Abner and Jerald Clark. Each spent most of his time in triple-A Las Vegas.

They weren’t so willing to gamble with their pitching. They signed Andersen, and made offers to free-agent pitchers Teddy Higuera and Bob Welch. Welch quickly rejected the offer, and Higuera decided to remain with the Milwaukee Brewers only after the Padres refused to guarantee the fourth year of the contract.

The Padres will adhere to a policy, McIlvaine said, of not providing four-year contracts to pitchers. He realizes it could restrict any chance of attaining top-quality pitchers, but he refuses to budge.

“The thing about pitchers is that if they get hurt,” McIlvaine said, “they can’t help you in any way. If a position player gets hurt, they can help you in other ways. They can pinch-hit, play the field, usually something.”

The Padres’ biggest dilemma is that the big-market teams largely are ignoring any concerns for their payroll. The Dodgers spent $36 million in the free-agent market this past winter. The Giants chipped in $33 million. Even the Atlanta Braves joined in the frenzy, spending $16 million.

“If Joe McIlvaine says we should go out there and spend X amount of dollars to get such and such a player, we’ll do that,” Werner said. “But we’re also businessmen. We don’t have the revenue stream to offset a lot of things.”

The Padres did raise ticket prices $1.50 per seat during the winter and attempted to increase parking, but the revenue generated from their local and cable broadcasting is only about $4.5 million. The Dodgers, Giants and Braves likely receive at least that much every month.

“This simply is not a market where you can make a lot of money in the baseball business,” said Dick Freeman, Padre president. “It’s never been a giant money-making team by any stretch of the imagination.”

Said Werner, who’s aware that the Yankees are in the second year of a 10-year, $500 million television contract: “It doesn’t make any sense to me that one team can have a $500 million contract, and here we are without the ability to generate that.

“It makes it tough to compete.”

This is why McIlvaine comes to the Padres with the promise of running the operation as a business. Each expenditure will be accounted. Frivolities will be eliminated. Contracts will be purposely structured.

McIlvaine already has implented many of his personal philsophies in the new Padre contracts, which are reflected in The Times’ survey:

--The only players in the organization who have incentives in their contracts are pitchers John Costello and Mike Dunne--each of whom were injured last year--and shortstop Garry Templeton, who signed before McIlvaine’s arrival.

McIlvaine: “We do it this way to protect the manager. The guy in the dugout can get caught in the middle of these things, and we don’t want that to happen. What happens, more times than not, is that individual goals become more important than team goals. The only way I give them out is if they’re coming off an injury season, and that’s what I did with Dunne and Costello.”

--Players with multi-year contracts are loaded with award bonuses, but players with one-year contracts are without bonuses.

McIlvaine: “When you have a multi-year contract, it’s easy to let down. It’s only human nature. This way, it gives them a reason to even be better, and reward them for it. It gives them incentive to excel. The players with one-year contracts don’t need that incentive. Their incentive is to play well enough to get another contract.

--Each player with at least two years experience is provided a single room on the road by the Padres, saving the player about $4,000 during the season.

McIlvaine: “I’m just being a nice guy. We certainly don’t have to do it, but we want to show our respect. I won’t do it with anyone who has less than two years in simply because I think it’s important for the youngsters to pal around with someone on the road.”

--No-trade clauses are virtually extinct. No one on the team has a complete no-trade clause, and Gwynn and Hurst are the only players who have partial no-trade clauses. Each has 12 teams to which he cannot be traded.

McIlvaine: “I’ll never a complete no-trade clause. I don’t believe in them. Too many things can happen in this game.”

And then there’s the unique contract of third baseman Jim Presley, who signed as a free agent two weeks before the start of spring training.

Presley receives a base salary of $500,000, but if he’s still on the team by the All-Star break, his contract will be prorated to $800,000 the second half of the season.

“The biggest reason for it,” McIlvaine said, “simply is because of economics. The other is an incentive to perform. He had a terrific first half last year (17 homers and 55 RBIs through July 28), and a terrible second half (two homers and 17 RBIs the remainder of the season). Maybe this is what he needs.”

The Padres’ precise payroll will be known April 9, when all contracts become guaranteed. Yet, even considering potential cuts to high-salaries pitchers such as Dennis Rasmussen ($805,000) and Calvin Schiraldi ($740,000), the Padres realize their payroll still will be teetering on financial despair.

“We’re certainly not thrilled about it,” Werner said, “but it’s something you have to do if you want to remain competitive. We’ve promised that all along to the fans of San Diego. We just hope somewhere down the road there’s a solution.”

PADRES IN 1985

Player Salary LaMarr Hoyt $900,000 Steve Garvey $800,000 Craig Nettles $800,000 Terry Kennedy $750,000 Garry Templeton $700,000 Goose Gossage $650,000 Tim Stoddard $500,000 Eric Show $475,000 Alan Wiggins $450,000 Tony Gwynn $400,000 Jerry Royster $300,000 Craig Lefferts $270,000 Dave Dravecky $240,000 Andy Hawkins $200,000 Tim Flannery $175,000 Al Bumbry $160,000 Bobby Brown $155,000 Kevin McReynolds $150,000 Kurt Bevacqua $140,000 Carmelo Martinez $140,000 Mark Thurmond $130,000 Bruce Bochy $80,000 Mario Ramirez $80,000 Roy Lee Jackson $70,000 Lance McCullers $60,000

PADRES’ 1991 PLAYER PAYROLL Player: Shawn Abner 1991 Contract: $180,000 Extras: Player: Larry Andersen 11991 Contract: $1.5 million Extras: $1 million signing bonus. Guaranteed. Award bonuses: $25,000 for making All-Star team; $50,000 for winning Rolaids Reliever award; $25,000 for second place; $50,000 for LCS MVP; $50,000 for World Series MVP. Player: Marty Barrett 1991 Contract: $100,000 Extras: Receives $1 million from Boston. Award bonuses: $35,000 for All-Star team; $25,000 for Gold Glove; $50,000 for World Series MVP; $50,000 for LCS MVP. Player: Andy Benes 1991 Contract: 235,000 Extras: Player: Jerald Clark 1991 Contract: $120,000 (approx.) Extras: Player: Pat Clements 1991 Contract: $145,000/$40,000 Extras: Player: John Costello 1991 Contract: $112,500 Extras: Receives $5,000 if pitches in 25 games; $5,000 for 30 games; $5,000 for 35 games; $5,000 for 40 games. Player: Mike Dunne 1991 Contract: $235,000 Extras: Incentives: $20,000 for 16 points; $15,000 for 30 points; $20,000 for 40 points; $25,000 for 50 points. Points system: 2 points for each game started; 1 point for each relief appearance. Player: Paul Faries 1991 Contract: $100,000 Extras: Player: Tony Fernandez 1991 Contract: $2 million Extras: Guaranteed Player: Wes Gardner 1991 Contract: $575,000 Extras: Player: Greg Gross 1991 Contract: To be determined Extras: Player: Tony Gwynn 1991 Contract: $2 million Extras: $1 million signing bonus. Guaranteed. Limited no-trade clause. Award bonuses: $25,000 for All-Star; $100,000 for MVP ($50,000 for second through fifth); $100,000 for World Series MVP; $100,000 for LCS MVP. Effective in 1993: $50,000 for Gold Glove; $50,000 for Silver Slugger. Player: Atlee Hammaker 1991 Contract: $100,000 Extras: Receives $868,750 from San Francisco. Guaranteed. Incentives: $50,000 for 16 points; 2,083.33 per point between 17-64 points. Point system: Games started equal 2 points; relief appearance of 2 or more innings equals 1.5 points; relief appearance of less than 2 innings equals 1 point. Award bonuses: $100,000 for Cy Young; $100,000 for MVP; $50,000 for World Series MVP; $50,000 for LCS MVP; $25,000 for All-Star. Player: Greg Harris 1991 Contract: $342,500 Extras: Player: Thomas Howard 1991 Contract: 105,000/$30,000 Extras: Player: Bruce Hurst 1991 Contract: 1.75 million Extras: $400,000 signing bonus. Limited trade clause. Guaranteed. Award bonuses: $100,000 for Cy Young; $100,000 for MVP; $50,000 for LCS MVP; $75,000 for World Series MVP; $25,000 for All-Star. Player: Darrin Jackson 1991 Contract: $260,000 Extras: Player: Tom Lampkin 1991 Contract: $107,500 Extras: Player: Craig Lefferts 1991 Contract: $1,875 million Extras: Signing bonus: $500,000 (paid). Guaranteed. If traded before end of 1991 season, receives $50,000. If traded before 1992 season, receives $25,000. Award bonuses: $75,000 for Cy Young ($25,000 for 2nd or 3rd); $75,000 for Rolaids ($25,000 for 2nd or 3rd); $25,000 for All-Star; $50,000 for MVP; $50,000 for LCS MVP; $50,000 for World Series MVP. Player: Derek Lilliquist 1991 Contract: $182,500 Extras: Player: Fred McGriff 1991 Contract: $2.5 million Extras: $1 million signing bonus. Guaranteed. Player: Jim Presley 1991 Contract: $500,000 Extras: If on roster July 7, will be paid a prorated salary of $800,000 for balance of season. Player: Dennis Rasmussen 1991 Contract: $805,000 Extras: Player: Bip Roberts 1991 Contract: $875,000 Extras: Player: Rich Rodriguez 1991 Contract: $117,500/$59,000 Extras: Player: Benito Santiago 1991 Contract: $1.65 million Extras: Player: Calvin Schiraldi 1991 Contract: $740,000 Extras: Garry TempletonPlayer: 1991 Contract: $500,000 Extras: Guaranteed. Incentives: $50,000 if plays in 100 games; $50,000 for 120 games played; $50,000 for 130 games played; $50,000 for 140 games played. Awardbonuses: $100,000 for MVP ($50,000 for second-fifth); $50,000 for LCS MVP;$50,000 for World Series MVP; $25,000 for All-Star. Player: Jim Vatcher 1991 Contract: $105,000 (approx.) Extras: Player: Ed Whitson 1991 Contract: $1.225 million Extras: Signing bonus: $200,000 (paid). Award bonuses: $50,000 for Cy Young; $35,000 for second; $25,000 for third; $25,000 for All-Star.