How the Padres defied small-market constraints and became a $3.9 billion behemoth

Irwin Kishner, co-chair of Herrick's Sports Law Group and co-chair of Herrick's Corporate Department, was quoted in The Athletic in an article discussing the recent record-breaking sale of the Padres. According to the article, the Padres changed hands at a $3.9 billion valuation, the highest number ever realized in the sale of a baseball franchise. 

The article discusses several elements that have increased the team's value, including the city's enviable weather, which allows the ballpark to operate as a year-round business, and that it is the only MLB city without another Big Four franchise "handing the Padres an undivided share of the region’s attention and disposable income." The article also highlights the growing franchise values throughout professional sports citing the scarcity of the product, tax incentives as well as the popularity of live sports content. 

The article also notes that the MLB unanimously approved the deal, allowing the new owners to acquire close to 45 percent of the Padres. Still, “putting together all that money, even if you have a billionaire who can write a big check, is complicated,” said Irwin. It also raises the question that will not be answered for some time: How much are the new owners willing to spend running the Padres? 

Read the full article in The Athletic here. Access may require a subscription.