As information unfold Friday morning that the San Diego Padres were closing in on a sale to a bunch led by Chelsea Football co-owner José E. Feliciano and his spouse Kwanza Jones for $3.9 billion, the record-setting sum — ought to the sale be finalized and at that worth — elicited quite a lot of reactions all through Major League Baseball.
“Absolutely shocked,” stated one group government of the worth. “Now what does this mean for the (upcoming) CBA?”
That query was maybe essentially the most urgent, as baseball’s homeowners are anticipated in upcoming labor negotiations to push for a wage cap partially to enhance franchise valuations which have usually lagged behind different main skilled sports activities leagues. MLB’s present Collective Bargaining Agreement expires later this yr.
The Padres’ price ticket seemingly goes towards the notion that MLB values are lagging. Forbes gave the Padres a $3.1 billion valuation coming into the 2026 season — a 59 % bounce from the earlier yr. A $3.9 billion sale worth would smash the earlier file for an MLB group, set by the New York Mets, who have been purchased by Steve Cohen for $2.42 billion in 2020. Going into the sale course of, there was an inexpensive expectation that the Padres would promote for north of $3 billion, maybe even $3.5 billion. But the reported take care of Feliciano and Jones blows these expectations out of the water.
Is San Diego an outlier? It relies upon on who you ask.
In one view, each franchise is exclusive. The Padres are San Diego’s solely group within the 4 main U.S. sports activities leagues. They profit from glorious attendance, climate and a stadium that hosts different occasions to generate extra income. They’re in California, which is dwelling to a number of billionaires, and the extra events , the larger the bidding warfare. Sources advised The Athletic that every one 4 teams vying for the group made a ultimate bid, and not less than one different group’s ultimate provide was within the $3.5 billion vary.
“The smaller markets are selling for twice what the large markets are,” stated agent Scott Boras. “An outlier? I would say the truth is (the Padres valuation) outs the lies that baseball isn’t at the most prosperous point of its existence.”
Added one other agent: “These guys opened the books, saw everything and bought this for $3.9 billion as we go to a (potential) work stoppage? These are smart, savvy business owners. They are in the process of buying undervalued assets.”
The Padres are ready to profit massively from the brand new CBA, ought to the league meet its aim for a nationwide media rights deal that might pay every membership tons of of hundreds of thousands yearly beginning in 2029. The Padres rank among the many smallest within the league in native media income.
“I hope they aren’t an (outlier),” stated one other industry government. “I hope it’s an example of what small-market teams can do with the right ownership. For years, there’s been people saying, ‘How can they keep spending?’ or ‘It’s going to massively crash on them,’ but kudos to them. They invested in the product and have been rewarded.”
The Atlanta Braves, the one publicly traded MLB group, noticed their inventory worth rise 4 % following the information of the potential Padres’ sale. Shares of the Braves are buying and selling at an all-time excessive. The Tampa Bay Rays, the final MLB group to be offered, went for $1.7 billion in September 2025. The worth was additionally greater than many individuals projected, although it was lower than the NHL’s Tampa Bay Lightning have been purchased for in October 2024 ($1.8 billion).
Not each group wanting to promote has outperformed projected valuations. Last August, the Pohlad household explored a sale of the Minnesota Twins however reversed course after they couldn’t get the worth they needed. They have been believed to be looking for about $1.7 billion but in addition carried roughly $500 million in debt, which was a difficulty for potential patrons on the time, because it was one of many highest debt-to-revenue ratios within the sport. (The Twins have since added new minority partnerships to erase that debt.)
In 2024, the Lerner household, homeowners of the Washington Nationals, additionally took the group off the market after they couldn’t discover a purchaser at their asking worth of roughly $2 billion.
When these groups have been pulled off the market, there was little discuss that the failure to promote was an indictment of the well being of the league. So, some puzzled, ought to the Padres actually be a shining instance?
San Diego had $300 million in debt, a manageable quantity that did little to deter events. Teams in vacation spot cities like Miami, Los Angeles or San Diego are all the time going to fetch extra curiosity. Billionaires need to personal groups in fascinating areas, and there’s no telling when one other Southern California group can be up for sale. Some within the sport surprise when, if ever, Los Angeles Angels proprietor Arte Moreno will entertain promoting the group once more. (Moreno explored promoting the Angels in late 2022 however then took the group off the market in 2024; it’s unclear if his choice was due to low bids or that he modified his thoughts.)
Regardless, the Padres’ sale can be utilized by the gamers’ union to illustrate that franchise valuations are rising even with out a wage cap. Agents and gamers will, after all, absolutely embrace the notion — truthful or not — that the league is doing nicely financially.
“These franchises are so undervalued it’s insane,” Boras stated. “There is no outlier in private equity. They care about valuation. Would you rather own the Phoenix Suns or San Diego Padres when you have double the content in baseball? Can you imagine what this does to other valuations? The fallacy of a salary cap helping. Does private equity care about salary caps? No, they care about 162 games and content and about selling stadium rights for $100-plus million.
“Baseball’s prosperity turkey is done. The barometer says it’s ready to eat.”
