Sheel Seidler, the widow of former Padres chairman Peter Seidler, is contesting control of the franchise.
Seidler filed suit Monday, accusing two of Peter Seidler’s brothers of “fiduciary breaches of trust” and fraud in their handling of the Seidler Trusts, which control the Padres. The suit seeks to void last month’s appointment of John Seidler, Peter’s oldest brother, as the team’s control person.
Sportico first reported the lawsuit, which was filed in Texas, where Peter and Sheel Seidler maintained a residence.
Sheel Seidler posted a statement on X on Monday in which she said the complaint was “a last resort” filed “to protect my family and to continue to carry out Peter’s legacy.”
Peter Seidler, the grandson of former Dodgers owner Walter O’Malley, was part of a group that bought the Padres in August 2012.
Sheel Seidler did not immediately return a voice message on Monday.
Through a spokesman, the Padres declined comment.
A spokesman for the Seidler Trusts provided a statement Monday afternoon:
“The complaint filed by Sheel Seidler, the widow of Peter Seidler, is entirely without merit,” it read.
“Peter had a clear estate plan. The plan specifically named three of his nine siblings, with whom he had worked closely for many decades, as successor trustees of his trust and Peter himself prohibited Sheel from ever serving as trustee. The trustee is exclusively responsible for designating the San Diego Padres’ next Control Person. In 2020, in connection with Peter’s appointment as Control Person, Sheel agreed in a sworn document that she had no right to be or to designate the Control Person and that she would not interfere with the designated Control Person. She also stated in May 2024 that John Seidler, Peter’s eldest brother, would be the best Control Person for the Padres. The Padres have already filed an application to Major League Baseball to appoint John.
“A lifelong baseball fan, seasoned business executive and current minority owner, John has the right experience and shares Peter’s vision for the Padres: ensure there is a consistently competitive team on the field and a best-in-class fan experience, with the goal of bringing championship caliber baseball to San Diego. Planning for the 2025 season is well underway, and we look forward to pursuing the franchise’s first World Series title.”
The lawsuit alleges Matt Seidler and Robert Seidler used the trusts as “a piggybank” and withheld funds from Sheel Seidler, and that Peter Seidler expressed before he died that he wanted his wife to take over as control person. The suit said she voiced her desire to be named control person and, in October, was informed via a letter from Matt Seidler that read, in part, that she lacked the “experience, skills and financial acumen” to run a major league team.
Sheel Seidler is among a group of Peter Seidler’s family , including siblings and cousins, that for ownership of approximately 45% of the Padres, according to multiple sources. Sheel Seidler’s lawsuit states she and her children own approximately 25% of the team, which makes them the largest shareholder. Mexican billionaire Alfredo Harp Helú is the only person outside of the Seidler and O’Malley families to own at least 15% of the club. That is the minimum threshold to be eligible as a team’s control person.
Attached to the lawsuit was a copy of a handwritten note purportedly written by Peter Seidler with the heading “Future Control Person.” Atop the list of 14 people were the names of Sheel and the couple’s three children.
The note stands in contrast to what multiple people in and around the franchise have said over the course of the past two years. Since rumors of his declining health began circulating in 2023, people who were close to Peter Seidler have contended he said his wife would not assume control of the team when he died.
In a far-ranging conversation with a Union-Tribune reporter in July 2023, his final public interview, Peter Seidler said that his plan was for the Padres to remain in his family “for generations.” Asked what that meant, and if Sheel Seidler would take over in the event of his death, Peter Seidler said he was not going to get into specifics.
Seidler, already a two-time cancer survivor, revealed in that interview that he was ill with a form of cancer, but that the type of cancer he had was not fatal. However, he confided that he was resigned to his ongoing health issues likely resulting in an earlier death than he would like.
Seidler died Nov. 14, 2023 at age of 63 from an infection related to his compromised immune system. Eric Kutsenda, his longtime business partner and friend, served as interim control person in the 13 months following Seidler’s death.
Ron Fowler was the team’s chairman from 2013 through 2020. Peter Seidler assumed that role in November 2020.
His widow’s lawsuit injects uncertainty into the Padres’ offseason — and their future.
The complaint suggests attempts to keep Sheel Seidler from becoming control person could be part of “efforts to sell and perhaps relocate the team.” While there has been conjecture in league circles over the past year that the Padres could ultimately be sold, the Padres have set franchise attendance records the past two seasons, and the idea of relocation is far-fetched, multiple MLB sources said Monday.
Padres officials have signaled their intentions to continue under a course of financial restraint that Peter Seidler veered from in his three seasons as the team’s chairman, during which the Padres ranked among the biggest spenders in Major League Baseball.
The team also exceeded the debt ratio limit allowed by MLB in that time and, according to several sources, was highly leveraged and, under Kutsenda’s guidance, had to submit to the league a plan to get back into compliance with league rules regarding debt. The team took out a $50 million loan to cover expenses at the end of the 2023 season.
The Padres made the playoffs in 2024 despite chopping nearly $100 million from their payroll. Team sources have said payroll will increase in 2025 but remain far from the aggressive spending of Seidler’s tenure.
Several people around the league said in December that the uncertainty over the Padres’ ownership had all but paralyzed their ability to make moves. To date, they have not signed any free agents nor made any trades this offseason.
However, that is not unprecedented. Several significant contributors to last year’s 93-win team were acquired in February or later.
Multiple sources said earlier this offseason that the Padres were required by MLB to name a control person by the start of spring training. It is not known how the lawsuit will affect the transfer of control.
