After winning 88 games in 2007, most of the baseball world had the San Diego Padres pegged as contenders this season. That was before Jake Peavy and Chris Young got hurt, Khalil Greene was useless and an outfield of Scott Hairston and Paul McAnulty fell flat on their face. Now, in a pivotal offseason for the franchise, the Padres are doing everything they can to completely dismantle the franchise.

We know all about the likely Jake Peavy trade. Even though Peavy has one of the friendliest contracts in baseball for a top-line pitcher, he’s on his way out, likely for nothing more than a bundle of prospects. But the real issue I have is the Padres’ treatment of franchise icon Trevor Hoffman, who has amassed 552 of his 554 career saves for the Friars. After some tense negotiations (and a rejected head-to-head meeting), Hoffman’s lowballed $4 million offer was withdrawn last night…VIA FAX.

Classy. Here’s a franchise that’s had two icons in the last 20 years. One of them, Tony Gwynn, went out as a Padre and is now eternalized in center field at Petco Park. But how awful is this Hoffman situation? Without Hoffman, a great argument can be made that the Padres’ downtown stadium would not even exist. He’s been that pivotal in the franchise’s organization

“Trevor is upset with the way they’ve handled the situation,” one of Hoffman’s agents said. Gee, ya think? This is about more than baseball wins and losses. Sure, the argument can be made that paying a closer $4 milion for a 100 loss team isn’t a great financial move. But giving the finger to Hoffman is an enormous PR hit, and it’s going to hurt them for years. You think Adrian Gonzalez wants to extend his contract after 2010?

You stay classy, San Diego.