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The San Diego Padres placed Yu Darvish on the restricted list, which could free up payroll for the cash-strapped team.

San Diego Padres star pitcher Yu Darvish was placed on the restricted list today as he spends the 2026 season recovering from elbow surgery, a decision that could free up additional payroll space for the Padres, according to a report from Alden Gonzalez of ESPN. 

This list is meant for players who remain under contract but are unavailable for various reasons, and it frees up a spot on the Padres’ 40-man roster that would allow the Padres to retain the rights to Davis if and when he does decide to return to the team 

There is no time requirement or limitations on the amount of times that must or can be spent on the list, and teams like the Padres aren’t required to pay players like Darvish once they’re placed on it, Gonzalez added. 

Darvish is set to make $15 million in the fourth year of a six-year, $108 million contract extension. Not being tied to his salary could allow the Padres to pursue a player like free agent starter Lucas Giolito, for instance, who would help bolster their thin rotation. There are currently no indications that Darvish intends to retire.

The last update on Darvish’s situation came back in January, when the San Diego Union-Tribune stated that the pitcher had informed the Padres of his intention to retire. Darvish added on social media that he was “leaning toward voiding the contract” but there was also “still a lot that has to be talked over.”

"Right now I am fully focused on my rehab for my elbow, and if I get to a point where I can throw again, I will start from scratch again to compete," Darvish added then. "If once I get to that point I feel I can't do that, I will announce my retirement."

Darvish didn’t pitch for the Padres last season until August 23 due to the combination of what was described as a “family issue” and an elbow injury, and he joined the rotation but struggled with a 4.23 ERA in 11 turns through the rotation. He started the final game of the Padres wild-card series against the Chicago Cubs at Wrigley Field, but he struggled to the point where he didn’t make it out of the first inning. 

Darvish underwent surgery to repair his ulnar collateral ligament with an internal brace back in November, and that procedure comes with a 12-15 month recovery timeline.

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