The San Diego Padres and new General Manager A.J. Preller are trying to make a big splash this offseason in hopes of competing for a N.L. West division title in 2015.

They were able to do that a week ago, agreeing to a trade with the Los Angeles Dodgers that sent star OF Matt Kemp, catcher Tim Federorowicz, and $32 million to San Diego, for C Yasmany Grandal, and pitching prospects Joe Wieland, and Zach Eflin.

However, that deal might not go through after all. The Padres are trying to decide whether to finalize or void the blockbuster trade, after Kemp’s physical revealed severe arthritis in both hips, according to a report by Bob Nightengale of USA Today Sports.

When the arthritis was revealed, it surprised Kemp, and now the Padres and team physicians are deciding whether this condition will affect his career.

If the Padres do decide to void the trade, then the Dodgers would have to re-work the trade they made with the Phillies for SS Jimmy Rollins. That trade sent Rollins to the Dodgers for a package that includes Eflin.

If the Kemp deal does fall apart, it could also impact the eleven-player deal agreed to Wednesday by the Padres, Nationals, and Rays. In that trade, the Padres received catcher Ryan Hannigan from the Rays.

Instead of simply voiding the trade, the Padres could ask the Dodgers to provide more money to cover the remaining $107 million on Kemp’s contract.

Kemp has had a lot of health issues in the recent past. In 2012, he missed 51 games with a strained left hamstring. In 2013, he injured his right-hamstring and only played in 73 games.

Kemp struggled in the first half of last season, but a strong second half, made him the most valuable Dodger outfielder, and L.A. had to trade an OF.

Another interesting dynamic was mentioned by Ken Rosenthal of Fox Sports on twitter this morning. If this deal does fall apart, it could potentially damage Kemp, and it would give the appearance that the Padres are leveraging medical information, which is a violation of the U.S. Department of Health and Human Services HIPAA policy.

This situation is very fluid, and very complicated and will continue to develop throughout the day. The Padres have until today to decide what there going to do.

Stay with Baseball Essential as this story continues to develop.

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