Potential Record Breaking Sale Price for the San Diego Padres
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 strong interest among bidders for the San Diego Padres and how the team could sell for a price that would "shatter an MLB record."
The article notes that there is heavy interest from four bidders, stating that the team could sell for north of $3.5 billion which is "likely be a significant talking point in baseball’s upcoming labor fight."
According to the article, "if the Padres indeed sell for more than $3 billion, the ramifications of the deal would reverberate across the industry," noting that with the upcoming expiration of the MLB’s collective bargaining agreement "[a] record-setting franchise sale could strengthen the Players Association’s argument that club values continue to rise even without a salary cap, the major change owners are expected to pursue in labor talks." However, the article further notes that the Padres may be an outlier because of the market's relative affluence, the team's surge in non-media revenue and the lack of available California-based clubs that will be up for sale in the near term.
“I always thought (the Padres) were undervalued because I think they play in a great market, and if deep-pocketed owners wanted to take this to the next level, it’s available,” said Irwin. “That increase in valuation did not shock me.”
Read the full article in The Athletic here. Access may require a subscription.