The San Diego Padres are on the verge of being sold for a record-breaking $3.9 billion. Jose E. Feliciano, co-owner of Chelsea Football Club, and his wife, Kwanza Jones, are the potential new owners, according to a source speaking to ESPN.
The sale price surpasses the previous MLB record of $2.4 billion, which was set by Steve Cohen’s purchase of the New York Mets in 2020. The sale is subject to approval by 75% of Major League Baseball’s owners. The next owners meetings are scheduled for June.
Feliciano to Take Controlling Stake
The Wall Street Journal first reported the news. Feliciano will be designated as the controlling owner.
Feliciano, aged 53, is the co-founder and managing partner of Clearlake Capital, a private-equity firm based in Santa Monica, California. In 2022, Clearlake and Todd Boehly, who is part-owner of the Los Angeles Dodgers, led a consortium that purchased Chelsea for $5.24 billion.
Beating Out Other Bidders
Feliciano and Jones outbid three other parties for the Padres, according to The Athletic. These included Detroit Pistons owner Tom Gores, Golden State Warriors owner Joe Lacob, and Dan Friedkin, owner of Premier League club Everton.
End of the Seidler Era
The family of the late owner Peter Seidler put the Padres up for sale in November, bringing to an end their 14-year ownership. In 2012, Seidler, his uncle Peter O’Malley, and Ron Fowler formed the group that purchased the Padres for $800 million. Seidler assumed more control and transformed the Padres from a smaller-market franchise into a financial force.
From 2021 to 2023, the Padres’ payroll exceeded $200 million annually. They secured stars such as Manny Machado, Fernando Tatis Jr., Jackson Merrill, Xander Bogaerts, Joe Musgrove and Yu Darvish. Petco Park’s atmosphere improved, and it consistently set attendance records.
Reasons for the Sale
Seidler’s death in November 2023 led to a legal dispute between his widow, Sheel, and his siblings over team control. Two years later, with John Seidler as chairman, the team announced it was exploring a sale. The situation led to a record valuation, despite the new owners taking on significant debt.
The Padres’ location in Southern California, in a city without another major professional sports team, was appealing. Their loyal fan base was another factor. The Padres have been without a local media contract since early 2023, impacting revenues. MLB’s plans to centralise local media by 2028 may alleviate these concerns.
The Padres are currently on an eight-game winning streak. They are still seeking their first World Series championship but have made the playoffs in three of the past four years.