So, what is next?
It is the battle cry heard throughout San Diego
following the announcement by the Seidler family that they’re exploring all strategic options, including the potential sale of the Padres.
No specific buyers have been identified, but the Seidler family has hired the advisory firm of BDT & MSD Partners to assist with the process. You might be familiar with their work, as they assisted with the sale of the Boston Celtics and the transfer of ownership of the Chicago White Sox.
What led us here
The potential sale of the Friars is in the early stages of the process. But we can identify where the timeline began. It begins with the death of club chairman and control person Peter Seidler in November 2023. His passing sparked
an unresolved legal battle between Seidler’s wife, Sheel, and his brothers (Robert, Matthew, and John) over the control of the franchise.
Sheel filed a lawsuit against her brother-in-laws, accusing them of fraud and ostracizing her from having an active role in the organization. Given that Peter’s wife and children own 25% of the Padres, the largest share in the ownership group, it is hard to believe that the legal system is needed to settle this dispute.
Her ultimate goal is to bring a World Series title to San Diego, cementing Peter’s legacy as the greatest owner in team history. But to fulfill his wishes, Sheel must become the franchise’s chairperson and control person.
Are the Padres an attractive investment
The Friars are considered an attractive investment to potential buyers. Commodity holding companies have set a value of $1.8 billion as the starting point to acquire the franchise.
Several factors come into play to determine the market price, as potential buyers will consider the dollar amount of guaranteed contracts they will have to absorb, the size of the fan base, and other financial results.
Guaranteed contracts act as a long-term liability on a franchise’s balance sheet. Currently, the Padres owe just under $176 million in guaranteed contracts. Any potential buyer must factor future financial commitments before making a bid on the franchise.
The size of the fan base will never be a problem, as the Friars play in front of large crowds on most nights at Petco Park. In 2025, the franchise finished second in major league attendance, with 72 of its 81 home dates sold out.
Typically, a team’s TV rights deal falls under the category of other financial results. The Padres brokered a poor contractual agreement that contributed to the team’s $300 million debt found on the ledger.
When Diamond Sports Group (the Padres’ primary television provider) filed for bankruptcy during the 2023 season, the franchise lost an estimated $55 million in annual revenue. The front office was forced to
reduce the team’s payroll to manage the sudden financial loss. As a result, the Padres’ opening-day payroll in 2024 was cut by $96 million, dropping the team from the third-highest payroll in 2023 to 15th.
The economic future of baseball
The next owner or ownership group should have questions about the economic state of Major League Baseball (MLB). The current MLB collective bargaining agreement expires at 11:59 pm ET on Dec. 1, 2026. Both sides are anticipating contentious negotiations that could lead to another lockout.
The owners want to implement a salary cap, while the players are unanimously against such a proposal. No potential buyer would consider getting involved in such a volatile market unless they were guaranteed a return on their investment.
The ownership landscape in professional sports has seen leaders of private equity firms purchasing franchises. They bring along some of their trusted management team to change the team’s revenue model that enhances the franchise’s market value.
It should not surprise anyone if the Seidler family concludes the Padres’ growth potential is too risky to give away. What happens next will be dictated by the franchise’s recent profit margins.
The outcome cannot be won or lost on the field.
