The Padres are set to have a new owner as José Feliciano is in the process of buying the controlling share of the franchise for a valuation of $3.9 billion. The number is eye-popping, as it shattered the MLB record Steve Cohen set when he bought the Mets for $2.4 billion in 2020. The sale price is an indication of the league’s health, but it’s unlikely to reset the market for MLB franchises for several specific reasons.
Under the Seidler family’s watch, the Padres have become one of MLB’s most competitive teams. They’ve reached the postseason in four of the past six years, and their rivalry with the Dodgers has been the most compelling in the league over that time. While that history is enough to pique buyers' interest, it’s not why the team is fetching a record price.
Buyers aren’t just purchasing a roster, but an organization with a clear blueprint to follow that has led to success.
What follows are all the reasons the Padres sold for the record-breaking price they did.
Petco Park is a gem
Petco Park opened in 2004, and if anything, it’s a better venue now than it was back then. Situated near the water, in the heart of downtown San Diego, Petco’s views are second-to-none in Major League Baseball, and the facility has outstanding sightlines. There are few, if any, bad seats in the house.
The Padres have done a phenomenal job with upkeep on what was already one of baseball’s best stadiums. The renovation of Gallagher Square beyond the center-field fence, where fans can buy relatively inexpensive tickets to sit on a hill and watch games with full access to concessions, has been a rousing success.
Petco has become a cornerstone of life in the city. Despite being 22 years old, you get the sense that the stadium is still early in its life. There will be no need for Feliciano to battle the city for a new venue any time soon.
It also has one of the best atmospheres in baseball because...
Padres fans are dedicated
Peter Seidler believed that if he invested in the Padres and put a compelling product on the field, fans would pour into the stadium. History has proven him right.
The Padres have finished in the top five in attendance in each of the past five seasons. The franchise finished second in 2025, as a record 3,437,201 fans entered Petco Park. The team sold out 72 of its 81 home dates. Only the Dodgers topped the Padres.
Through 13 home dates this season, San Diego is again sitting in second place, averaging 42,394 per game. That’s behind the Dodgers, but more than 2,000 higher than the third place Yankees.
Going to games at Petco Park has become a regular part of life in San Diego. It's the place to be and has become the beating heart of downtown.
In addition to strong attendance, Padres gear is ubiquitous in San Diego. Fans don’t just show up, they spend. The team's new City Connect 2.0 jerseys generated a team record $1.1 million in retail sales in a single day.
Beyond ticket and merchandise revenue, Padres ownership also benefits from a steady stream of non-baseball events at Petco Park. Feliciano is inheriting a business with a diversified revenue stream.
The Padres have bankable stars
The Padres have a top 10 payroll this year, which also means they have bankable stars to build around. Feliciano won’t have to start a multi-year rebuild, he already has the players in place to win now.
Fernando Tatis Jr. is under contract through 2034, Manny Machado and Xander Bogaerts are locked up through 2033, while Jackson Merrill will be on a team-friendly deal through the 2035 season. On top of that, star closer Mason Miller can’t hit free agency until 2029.
That group of players should keep the team competitive and marketable for a long time. It’s also worth noting that MLB’s upcoming new collective bargaining agreement is expected to tamp down spending by big-market teams. That could hurt the rival Dodgers and, in turn, make the Padres even more competitive.
The market
San Diego is the eighth-largest city in the United States and an affluent market compared to its competitors. It is one of the most expensive cities in the country. People living in “America’s Finest City” have money to spend, which is exactly what franchise owners want.
While the city has a large population, its media market is severely limited by geography. The region is surrounded on all four sides by barriers. To the west is the Pacific Ocean, to the south is the U.S.-Mexico border, to the north is Orange County, and to the east is a largely empty desert all the way to the Arizona border. If there were a way for MLB to open San Diego’s market to Tijuana, Mexico, it could jump by several million households, but that’s not in the cards.
San Diego’s geographic location is one of the things that make it desirable, but it also boxes in the media market, which ranks 30th in the United States. The thing is, that might not matter much moving forward.
A new collective bargaining agreement is likely to restructure how television revenue is distributed. It is expected that the league will pool all funds into a single pot and distribute them equally. That is expected no later than 2028, when MLB negotiates its next media rights deal. That could lead to a massive influx of cash for the Padres' new ownership group.
California is a draw
This won’t shock anyone, but San Diego’s location and the fact that it’s situated in California is why it’s had to see the Padres’ sale price impacting other franchises across MLB.
Sports franchises in California rarely come on the market. When they do, competition to buy them is typically fierce. It makes sense. Most prospective owners would rather commit to spending their futures in a nice climate than a bad one. The Padres had four prominent billionaires battling to buy the franchise to the end. That wasn't long after the Twins and Nationals struggled to find buyers.
A number of factors combined to make not only the Padres, but the San Diego market attractive to its new owner.
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This article was originally published on www.si.com as Why the Padres Sold for $3.9 Billion—and Why It Won’t Reset MLB’s Market.
