Actually, no one knows exactly what this means. Peavy is still a Padre, for at least the moment. But will the Padres look for other trade options regarding the 2007 Cy Young Award winner, or will they keep Peavy?

And if they keep Peavy, how will they reach their reported $40 million payroll ceiling with the pitcher's $11 million contract -- and $63 million over the next four years -- still on the books?

The Padres were looking to fill several holes in addition to slashing their payroll with the trade to Peavy in what at one point looked to be a 5-for-1 deal with the Cubs.

"To move Peavy, we plan on getting a lot," Padres general manager Kevin Towers said. "We'll regroup next week and figure out what we're going to do. I'm disappointed. A lot of time and energy went into this. Trades are tough to make.

"It doesn't look like anything is going to happen with the Cubs."

Cubs general manager Jim Hendry notified Towers on the final morning of the winter meetings that he was withdrawing from talks regarding Peavy. One hang-up appeared to be how much salary the Cubs would pick up regarding one of the players apparently headed to the Padres.

Pitcher Jason Marquis was likely to be sent to the Padres. But the Cubs wanted to be responsible for no more than $4 million of the $9.8 million due Marquis in 2009. The Padres expected the Cubs to pick up at least $5 million of Marquis' contract.

The Phillies were also involved in a potential three-team deal.

Meanwhile, Padres fans seemed split on Peavy. The Padres blogs immediately filled with responses. Many liked the idea that Peavy remain a Padre. Others favored the idea that the team get as much as it could for Peavy.

So, what next for Peavy and the Padres? Peavy has full veto powers regarding any trade. He had approved a trade to the Cubs. Peavy has said he prefers to stay in the National League, but the list of NL teams interested in Peavy appears to have dwindled to zero.

Will Peavy OK a trade to an American League team?

"How many rugs are you going to pull out from under this guy?" wondered Peavy's agent, Barry Axelrod.

Towers had said Dec. 10 that he expected a trade for Peavy to be completed within 24 hours.