Padres Sale Looms After Partial Resolution of Pending Lawsuit

Irwin Kishner, co-chair of Herrick's Sports Law Group and co-chair of Herrick's Corporate Department, was quoted in Front Office Sports in an article discussing the sale process of an MLB team that appears to be ramping up following the partial resolution of a legal dispute among the family-member owners. In the suit, the widow of the former Padres chairman sued her brothers-in-law, who run the team, alleging a series of claims. The article reports that the parties reached an agreement to resolve most of the claims, with the remaining claims of breach of duty to distribute and demand for accounting still pending. 

Amid the suit, the Padres announced they hired "merchant bank BDT & MSD Partners to advise on a potential sale of all or part of the franchise."

"The legal development could have implications for the process. The clearing of most of the claims in the lawsuit may signal that deal talks are ramping up," according to Irwin. Although Irwin notes "prospective buyers will likely feel more comfortable once the remaining two claims are also addressed."

“It’s not impossible to conduct a sale with something like this going on,” Irwin said. “But most buyers, unless they’re going to get a discount, are much better off going in with all these issues resolved.”

Read the full article in Front Office Sports here. Access may require a subscription.