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The Padres are only $2 million away from the salary cap. Wait, what?

Do the Padres have a payroll limit? Reading MLBTR today leads us to Rosenthal's speculation that Prior probably wants to come to San Diego. Sure. That makes sense. Closer to mom and dad when Prior's arm falls off and all that. What I don't get is this:

If the Padres, who are nearing their payroll limit, get significantly outbid, it will force him to make a decision.
The Padres' problem is that the Jim Edmonds trade increased their payroll to $73 million, $2 million below their limit.
Where's this limit coming from? How long have the Padres had a $75 million payroll limit? Did I totally miss something?