Matt Johnson
The San Diego Padres were one of the most aggressive teams in Major League Baseball under Peter Seidler, often among the leaders in payroll each season. With the Seidler family now poised to sell the team, it could happen at a staggering cost.
USA Today‘s MLB insider Bob Nightengale wrote on Sunday that even with the franchise in debt, the expectation is that the Padres will be sold “in excess” of $3 billion. It would shatter the record for the biggest franchise sale in baseball history.
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In 2020, billionaire Steve Cohen bought the New York Mets at a record-setting price of $2.4 billion. It broke the previous record set back in 2012, when the Guggenheim Baseball Management group bought the Los Angeles Dodgers for $2 billion.
It would also more than double the totals spent in recent years to buy the Kansas City Royals. In 2019, the Royals were sold to John Sherman in a deal valued at approximately $1 billion. More recently, billionaire David Rubenstein bought full control of the Baltimore Orioles in a deal valued at $1.725 billion.
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So why are the Padres, even saddled with debt, expected to be worth $3-plus billion? First, the projected sale price aligns perfectly with Forbes’ MLB franchise valuations in 2026, which put the Padres at a $3.1 billion value.
Part of the interest stems from the growing expectation that when MLB and the players union agree to a new collective bargaining agreement, there could be a salary cap in place. That would allow owners to restrict player salaries, and they’d no longer have to commit to spending $300-plus million per season on player payroll, increasing their bottom line financially.
Another factor is the popularity of the Padres. Petco Park in San Diego is widely regarded as one of the best in baseball and the club has ranked top-five in average attendance each season since 2021.
On top of that, there’s the potential influx of cash if MLB is able to increase its revenue from selling broadcasting rights nationally at an even higher markup. Furthermore, under the current streaming rights pact, Padres.TV, the team’s location in a top media market increases their revenue.
There’s one other thing to keep in mind with the Padres up for sale. Historically, teams up for bidding have operated a bit as sellers at the MLB trade deadline by offloading player salaries to reduce debts and provide greater incentive to potential buyers who want the franchise. That’s very much in play for San Diego this summer.
