SAN DIEGO -- Jake Peavy to the Chicago Cubs might still have legs.

A potential trade that was considered dead last month after the Cubs and Padres failed to reach an agreement during the winter meetings in Las Vegas, the Cubs might have found financial flexibility to make the deal happen after two days of transactions.

Since Tuesday, the Cubs have cut their 2009 player payroll by roughly $9 million after trading away second baseman Mark DeRosa and pitcher Jason Marquis. Chicago is also in the hunt for former Padres outfielder Milton Bradley, a free agent. And the Cubs signed utility infielder/second baseman Aaron Miles to a relatively affordable two-year deal averaging $2.45 million.

That likely gives the Cubs the financial flexibility for 2009 to bring Peavy on board. However, the team doesn't have nearly as much flexibility in the 2010 and 2011 seasons as general manager Jim Hendry still has to account for significant raises to several players on the roster.

And with the team's sale still unresolved, Hendry and Chicago may be in wait-and-see mode for ideas from the new ownership on the club's future player payroll. That becomes especially pertinent with Peavy's contract escalating from $11 million in 2009 to $15 million in 2010 before it caps out at $22 million in 2013 if the Cubs are forced to pick up the pitcher's team option as part of a trade.

Since they returned from Las Vegas, the Padres have maintained they would not pursue trades for Peavy, nor would they discuss any talks publicly. But Padres officials also said they would listen if teams came calling. The Padres, who are expected to have a player budget of $40 million in 2009, are desperate to shed Peavy's salary, which would account for more than 25 percent of the payroll.

Note

An mlb.com report said the Milwaukee Brewers have interest in signing RHP Trevor Hoffman, however, GM Doug Melvin said the team's interest hasn't yet been reciprocated. Last month, Padres GM Kevin Towers said a Peavy trade might pave the way for Hoffman to return as the team would have freed up enough salary to retain him.