Small-market success or cautionary tale? Why Padres fit both sides of MLB's labor debate — SkimNews
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- San Diego Padres sold for a record $3.9 billion — nearly five times the $800 million paid in 2012 — after owner Peter Seidler's November 2023 death, with José E. Feliciano and Kwanza Jones introduced as new owners on Aug. 24
- Seidler's ownership drove Padres payroll from $180 million in 2020 to $225 million in 2021 to over $250 million by 2023, trailing only the Yankees and Mets, while attendance surpassed 3 million fans annually since 2023
- Padres have paid into MLB revenue sharing every year since 2023 despite ranking 24th in market size, and in 2026 notched their fifth consecutive winning season while approaching their third straight playoff berth — both franchise firsts
- MLBPA interim executive director Bruce Meyer said in June 'We want to encourage more San Diegos,' citing Seidler's investment-driven blueprint as a model the union wants other small-market owners to follow
- Padres still owe a combined $810 million to Manny Machado, Fernando Tatis Jr., Xander Bogaerts, and Jackson Merrill after this season, with $116 million due in 2033 when Machado and Bogaerts will be playing in their age-40 seasons
- Los Angeles Angels sold for $4 billion to Stan Kroenke just eight days after the Padres deal, while the Minnesota Twins and Washington Nationals were pulled off the market entirely — a split league officials cite as evidence for a cap-and-floor system
- Padres' farm system was ranked last in baseball by ESPN's Kiley McDaniel entering this season, as GM A.J. Preller has repeatedly traded prospects to supplement a major league roster carrying one of the heaviest payrolls in the sport
Why it matters: The Padres' record sale was built on aggressive spending that left $810 million in future payroll commitments and the league's worst farm system — giving owners a concrete counterexample to the union's 'more San Diegos' argument. With the Twins and Nationals pulled off the market and the Angels fetching $4 billion, an advisor quoted in the piece says franchise valuations diverge so sharply that cities like Kansas City, Cleveland, and Detroit 'have a huge split in asset values' — the exact inequality a cap-and-floor system would address.
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