Peter Seidler’s Widow Files Lawsuit Against Peter’s Brothers For Control Of Padres

6:59pm: The Peter Seidler Trust released a statement on Monday evening (relayed by Bill Shaikin of the Los Angeles Times). It calls Sheel Seidler’s complaint “entirely without merit.” The Trust claims that Peter Seidler had a “clear estate plan” which names three of his brothers as successor trustees. The Trust alleges that Peter Seidler “prohibited” his wife from ever becoming trustee and that Sheel Seidler agreed in 2020 “that she had no right to be or to designate” the franchise’s control person.

The Trust did not directly address Sheel Seidler’s claims that Matt Seidler could pursue a sale and relocation. However, Kevin Acee of the San Diego Union-Tribune writes that sources around the league consider the idea of the Padres leaving to be “extremely far-fetched.”

2:31pm: Last month, it was reported that the Padres would be appointing John Seidler to take over as the club’s new control person, but that was still pending league approval and there are new developments in that story. A report from Eben Novy-Williams and Daniel Libit at Sportico has details of a lawsuit filed by Sheel Seidler, Peter’s widow, trying to gain control of the team. Sheel later released a statement in relation to the story.

At issue is how things have proceeded in the wake of Peter Seidler’s death, which was just over a year ago. Peter was part of a group that purchased the Padres in 2012. Ron Fowler acted as the club’s control person until Peter took over after the 2020 season. MLB teams are often owned by multiple people but each team has one designated control person who is a point of contact for the league and votes on key matters.

During Peter’s ownership tenure, the club became known for being highly aggressive, despite being in a relatively smaller market. As shown in the data at Cot’s Baseball Contracts, the Padres had been one of the lower-spending clubs for much of the century, until recently. They had one of the top ten payrolls in 2021, then got into the top five in 2022 and the top three a year after that.

That led to a huge increase in terms of fan engagement and also results, with the club having now made the postseason in three of the past five seasons. However, it hasn’t all been smooth sailing. In September of 2023, it was reported that the club’s wild spending had put it “out of compliance with MLB regulations regarding their debt service ratio,” which was going to lead to a payroll crunch. Peter, who had a number of ongoing health problems, died less than two months later.

Shortly after Peter’s death, it was reported that a new control person had been decided upon. Eric Kutsenda, one of the co-founders of Seidler Equity Partners, was given the title on an interim basis. Just over a year later, the aforementioned reporting from last month indicated that Peter’s brother John would be taking over as control person. The report from Kevin Acee of the San Diego Union-Tribune included a statement that mentioned two of Peter’s brothers: “Peter’s youngest brother Matt, as trustee of Peter’s trust, is pleased to announce that John Seidler, Peter’s oldest sibling, an accomplished entrepreneur and business executive, will be the Padres’ next control person, pending approval by Major League Baseball.” Acee added that the Seidler family owns “what is believed to be a 45% stake in the team.” That includes Peter’s brothers, widow, mother and others.

Today’s lawsuit suggests that segment of the ownership group is not aligned in their thinking. According to Sportico’s report, Sheel’s lawsuit alleges that two of Peter’s brothers, Matt and Bob, breached their fiduciary duties as trustees of the Seidler Trust. The suit claims they conspired to sell trust assets to themselves at “far-below-market prices,” as they “schemed to solidify their control of the Padres.”

The suit also suggests that the brothers had racial and sexist motivations for keeping the club out of Sheel’s hands, saying that Bob’s wife made multiple “racist, profane and hateful communications directed at Sheel—a woman of Indian descent—in communications.” Sheel claims that Peter wanted to eventually pass the club to his kids and wanted her to act as control person in the interim, with the brothers now trying to “falsely cast themselves as Peter’s true heirs.” Evan Drellich of The Athletic relays one section of the suit which suggests Matt wants to “sell, and perhaps relocate, the team, over Sheel’s strident objections.”

Sheel is seeking damages, that the defendants be denied compensation from the Seidler Trusts, to void any of their previous actions relating to advancing the Padres’ control person and also that Matt be removed as the trustee, with a receivership taking control of the trust.

“Earlier today,” Sheel’s statement reads, “I filed a complaint against Matthew Seidler and Robert Seidler to protect my family and to continue to carry out Peter’s legacy.” She goes on to talk about how much the club meant to the family and her desire to be named control person. “The complaint alleges claims against Matthew and Robert for breaches of fiduciary duty and fraud. I would urge anyone who is interested in the details to read the full complaint. This was not a decision I made lightly. During this difficult period, I have done everything in my power to avoid unwanted distractions and resolve the matter privately. I have focused on supporting the work of the many dedicated professionals within the Padres organization, as well as the incredible players we have the privilege of watching nearly every day throughout the season. I made this decision as a very last resort, but I am confident it is the right one, and the best way to protect the Padres franchise and ensure the vision that Peter and I shared for the team will continue.” She goes on to state her desire that the team will one day be left to hers and Peter’s children while hoping for a quick resolution to this dispute.

Legal disputes over a baseball club are not unprecedented. Most recently, Orioles owner Peter Angelos fell into ill health, which led to his family members filing multiple lawsuits against each other for control of the club. Those suits were eventually dropped and the club was sold to David Rubenstein.