San Diego Padres nearing a whopping sale, AP source says

The family of late San Diego Padres owner Peter Seidler is on the verge of selling the baseball franchise in what would be a record-breaking deal for Major League Baseball, according to a person familiar with the negotiations.

The deal, which could value the team at approximately $3.9 billion, would shatter the previous MLB record sale price of around $2.4 billion that Steven Cohen paid for the New York Mets in 2020. The potential buyers are private equity billionaire Jose E. Feliciano and his wife, Kwanza Jones, as first reported by The Wall Street Journal.

The source, who spoke on condition of anonymity because the Padres organization is not publicly commenting on the process, indicated that the sale is in its final stages. If completed, the transaction would mark a significant moment in baseball ownership history.

Feliciano, 53, brings substantial financial and sports investment experience to the table. He is the co-founder and managing partner of Clearlake Capital, a Santa Monica-based private equity firm. He already has a foothold in professional sports through Clearlake’s involvement in an investment group that purchased English Premier League club Chelsea in 2022, alongside Los Angeles Dodgers minority owner Todd Boehly.

The Seidler family began exploring a sale last November, nearly two years after Peter Seidler’s death. His brother John has served as the Padres’ chairman during the interim period.

Peter Seidler had originally joined an ownership group that purchased the team for $800 million in 2012, becoming the primary owner in 2020. During his tenure, he became beloved in San Diego for his commitment to winning and willingness to spend on talent. Under his ownership and with general manager A.J. Preller’s leadership, the Padres have achieved unprecedented success, reaching the MLB playoffs in four of the last six seasons – a first in franchise history – despite competing in the same division as the powerhouse Los Angeles Dodgers.

Current Padres players expressed enthusiasm about the potential new ownership, particularly noting the significant valuation.

“I think it’s special that they went out there and put that number out there for us,” said star slugger Manny Machado before a game against the Los Angeles Angels. “It tells you everything they want for the organization. Looking forward to some conversations with them, and what they see for the future of San Diego.”

Infielder Jake Cronenworth, a Padre since 2020, added: “You look at what’s going on in our city and just the state of baseball in general, and this game is in an amazing place. For the market that we’re in, and what the team just sold for, I think it shows where the game is. Not only is it close to $4 billion, but for it to break the record is very, very impressive.”

The nearly $4 billion valuation reflects several factors that make the Padres an attractive investment. As San Diego’s only franchise in North America’s four major professional sports leagues, the team enjoys extraordinary local support. The Padres have set attendance records for three consecutive seasons, drawing 3,437,201 fans last year – second only to the Dodgers across all of MLB.

The team finished the 2023 season with the ninth-highest payroll in baseball at approximately $217 million, though this represented a decrease from peak spending under Seidler. The current roster features long-term commitments to stars Fernando Tatis Jr., Machado, and Jackson Merrill – all signed through at least 2033 – along with dominant closer Mason Miller.

Potential buyers were evidently undeterred by the Padres’ relatively modest media revenue. Industry analysts expect the team to benefit substantially from any new media arrangements that accompany baseball’s next collective bargaining agreement.

Feliciano’s background adds a noteworthy cultural dimension to the potential sale. Born and raised in Puerto Rico before attending Princeton and Stanford, he would become just the second Latino majority owner in Major League Baseball, joining the Angels’ Arte Moreno.

Machado, who himself holds a minority stake in San Diego’s Major League Soccer club, expressed particular enthusiasm about this aspect: “That is unbelievable, having another Latin come and be an owner. I think that tells you a lot about where baseball is heading. Blessed to have another Latin owner that can bring that Latin culture to San Diego, which is already a big part of the Latin community.”

Any sale of the Padres requires approval from 75% of MLB owners before becoming official.