Friday morning, news broke that the San Diego Padres organization had officially been sold. And that news effectively ended much of the debate, disagreement, and complaints about the market size disparities in modern Major League Baseball.
For over a decade, the Seidler family, primarily the late Peter Seidler, owned and operated the Padres. And they turned a perennially bottom-feeding franchise into a juggernaut. How? By treating a competitive sport like a competitive sport, and investing heavily in the on-field product.
Now? It’s been sold to billionaire José E. Feliciano and his wife Kwanza Jones, owners of the English Premier League team Chelsea. For a staggering and record-setting $3.9 billion.
RELATED: San Diego Padres To Be Sold For Record $3.9 Billion Deal
Nearly $4 billion for a team located in one of the smallest markets in Major League Baseball. A team that’s never once won a World Series, and hasn’t won the National League West in quite literally 20 years. That team sold for $4 billion. Just six years ago, Steve Cohen bought the New York Mets for $2.4 billion.
The New York Mets. In New York City. The largest media market in the country. And the Padres just sold for 63% more, six years later. This is why all the whining and complaining from small market teams across the sport is manipulative nonsense.
What makes this price even more stunning is that the Padres currently do not have a television deal with a regional sports network. While much of the focus and criticism of the Los Angeles Dodgers’ spending habits rests on their agreement with Spectrum, Padres games are produced exclusively by MLB.
Fubo and DirecTV+ carry the Padres “channel,” but for most fans, they are forced into buying the team’s package of games through MLB.tv. And they’re still worth $3.9 billion.
How can this be, when teams like the Pirates and Marlins relentlessly cry poor, despite raking in huge amounts of revenue sharing dollars? The Marlins even play in a significantly larger market than the Padres. San Diego County has roughly 3.4 million people, while the Miami metropolitan area has 6.4 million. Yet the Padres can routinely run payrolls at or above $200 million, while the Marlins spend under $100 million. Why?
Because the Seidler family, particularly Peter, spent money to build a competitive product, taking advantage of the window of opportunity that the Chargers’ move to LA offered.
Seidler, who had serious health issues for years, invested in the team in hopes of winning a World Series before he died. They signed big name free agents like Eric Hosmer, Xander Bogaerts, and Manny Machado. They were aggressively in trades, bringing in stars like Blake Snell, Josh Hader, Mason Miller, Dylan Cease, and Juan Soto. They signed key players to extensions, like Yu Darvish, Jackson Merrill, and Fernando Tatis Jr.
And what do you know, fans appreciated the effort. Petco Park is routinely sold out, and currently ranks second in average per game ticket sales with 42,395. Turns out, the old adage of spending money to make money is accurate.
This sales price shows that the owners complaining about not being able to compete with big market teams are, to put it mildly, wrong. Money is pouring into the sport, and there’s more to be made when teams try to win. Fans buy tickets when ownership shows they take winning seriously. Fans buy jerseys when they have star players to support. And fans will spend money to buy a package of baseball games when there’s a reason to watch.
Instead, we have owners like Bob Nutting in Pittsburgh, who hasn’t signed a free agent to a contract longer than two years in decades. Literally decades. We have the Marlins, who have taken a community of rabid baseball fans, as the electric atmosphere at the World Baseball Classic demonstrated, and spat in their face by demonstrating a commitment to spending as little as possible. We have the Milwaukee Brewers, who, while competitive, trade every single big-name player they have as soon as possible to avoid long-term contracts.
But the Padres sale demonstrates that despite the excuses and gaslighting, the fastest way MLB owners could increase their franchise values is by spending money on players. If you build it, they will come.
