The Padres announced Thursday that the Seidler family, which has owned the majority stake in the franchise since 2012, will explore “strategic options” for the team, including a potential sale of the franchise. Kevin Acee of the San Diego Union-Tribune reported the potential sale just minutes before the team’s formal press release.
“The family has decided to begin a process of evaluating our future with the Padres, including a potential sale of the franchise,” chairman John Seidler said within this morning’s announcement. “We will undertake this process with integrity and professionalism in a way that honors [late chairman Peter Seidler’s] legacy and love for the Padres and lays the foundation for the franchise’s long-term success. During the process and as we prepare for the 2026 season, the Padres will continue to focus on its players, employees, fans, and community while putting every resource into winning a World Series championship. We remain fully committed to this team, its fans, and the San Diego community.”
It’s been nearly two years to the day since the untimely passing of late Padres chairman Peter Seidler, who passed away at just 63 years of age. His brother, John, was approved as the team’s control person earlier this year.
That appointment came after a monthslong legal battle wherein Peter’s widow, Sheel Seidler, filed suit against brothers-in-law Matt and Bob Seidler, alleging that they had breached fiduciary duty and committed fraud as successors of their late brother’s trust. Sheel Seidler accused Matt and Bob of selling assets to themselves at “far” below-market prices as they attempted to consolidate control of the franchise. Matt vehemently denied the allegations in a formal statement of his own, wherein he accused Sheel of “manufacturing claims” against other trustees in an effort to secure control of the franchise herself.
To this point, Sheel’s lawsuit has yet to be litigated in full. If it reached that point, it’d presumably be a yearslong process. There’s no indication that the parties have settled the suit outside of court, either.
At this juncture, it’s not yet known whether the Seidler family will sell the majority stake or seek new minority investors. Acee reports that one minority owner, who owns a roughly 10% stake in the team, is in the process of selling his stake in the club. Whether there will be larger portions available remains to be seen and is surely in part dependent on interest. Acee’s report also indicates that the preliminary $1.8 billion valuation of the franchise includes around $300MM in debt and “more than $150 million in paybacks to owners for two cash infusions made in recent years.”
As we recently saw with the Twins, who had a reported $425MM in debt while they attempted to sell the franchise for around $1.7 billion, that level of debt can prove a major obstacle in finding a buyer. The Pohlad family ultimately opted not to sell the Twins franchise, instead bringing in two new minority stakeholders whose investments in the club (coupled with an aggressive deadline fire sale) helped to clear that debt.
While the current ownership landscape is rather tumultuous, the Padres should still be in a position to command considerable interest. Both Forbes and CNBC have reported the team to be profitable. They’ve set franchise attendance records in three straight seasons and ranked second in the National League in terms of attendance this season — thanks in part to a lack of competition in terms of major sports teams in the market — but still enjoy the benefit of receiving revenue-sharing funds due to the size of their market. In that sense, even with that notable debt and some infighting among the current owners, the Padres have many points working in their favor if the Seidler family does choose to pursue a sale of the majority stake.
Acee further reports that even as the team explores a potential sale, one source described the team’s baseball operations as “business as usual,” adding that payroll will be in the same general range as in 2025. The Padres opened the 2025 season with a payroll of nearly $210MM and tacked on a few million more over the course of the season. RosterResource currently projects a $201MM payroll, though that’s before any potential non-tenders or trades from the big league roster.
The Padres were far more free-spending under Peter Seidler’s watch than they have been since his passing. “Business as usual,” in that sense (coupled with a repeat of the 2025 payroll), seems to suggest that San Diego will need to explore creative deals to address various holes on the roster. The Padres have utilized complex contract structures (e.g. Nick Pivetta’s backloaded, opt-out-laden four-year contract) to keep payroll in what current ownership deems an acceptable range. They’ve also worked aggressively on the trade market to find low-cost options at areas of need (e.g. catcher Freddy Fermin, closer Mason Miller) — but in the process have further depleted an already thin farm system. They’ll now look to fill multiple rotation holes and perhaps add a bat without much in the way of financial flexibility.
Further cementing the notion that the status quo will be maintained, at least from a baseball operations standpoint, Acee writes that John Seidler and president A.J. Preller have been discussing a contract extension which could be finalized in the near future. Preller is entering the final season of his most recent contract extension. He’s been running baseball operations in San Diego since 2014. Readers are highly encouraged to read Acee’s piece in full, as it contains more granular details about the current financial structure of the ownership group and quotes from various anonymous sources on the possibility of a sale and the long-term outlook of the club.
“Craig has been a strong presence in our organization for nearly a decade,” president of baseball operations A.J. Preller said in the press release. “He possesses deep organizational knowledge and brings natural leadership qualities to the Manager’s chair. As both a player and in his post-playing career, Craig has displayed an ability to elevate those around him. His strength of character, competitive nature and talent for bringing people together make him the ideal choice to lead the Padres.”