Wife of late Padres owner Peter Seidler sues for control of team

ByALDEN GONZALEZ
January 6, 2025, 4:59 PM

Sheel Seidler, the widow of? San Diego Padres chairman Peter Seidler, sued two of his brothers Monday in an attempt to become the team's control person.

In a complaint filed in Texas probate court, Sheel Seidler claims she and her three children have been "effectively ostracized" from the organization since Peter Seidler's death 14 months ago. The suit names Robert and Matthew Seidler as defendants, accusing the brothers of "fiduciary breaches of trust, fraud, conversion and egregious acts of self-dealing" in their roles as trustees and executors of Peter Seidler's estate.

The Padres announced Dec. 21 that Peter's oldest brother, John Seidler, would become the team's control person, which Sheel opposed and claims went against her late husband's wishes.?

In a letter to fans, Sheel called her complaint "a very last resort" to "protect my family and to continue to carry out Peter's legacy."

"[A]s the holder of the largest individual ownership stake in the San Diego Padres, and the sole beneficiary of the Seidler Trusts, which possesses exclusive rights with respect to control of the franchise, I am seeking to be named the control person for the Padres,"?Sheel Seidler wrote as part of her letter.

A statement from a spokesperson for the Peter Seidler Trust, which controls the Padres, called Sheel's complaint "entirely without merit."

"Peter had a clear estate plan," the statement continued. "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."

The statement alleged that 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. The statement also alleges that Sheel stated in May 2024 that John Seidler "would be the best control person for the Padres."

Peter Seidler, a two-time cancer survivor, died from complications of an infection on Nov. 14, 2023, leaving behind Sheel and their children, now ages 4, 9 and 11. Eric Kutsenda, a longtime friend and business partner, was named interim control person before essentially turning over responsibilities to John Seidler 13 months later.

Sheel Seidler's complaint claims assurances from Peter's brothers that they would act for the benefit of Sheel and the children have "shown to be hollow" in the wake of his death.

Matthew and Robert Seidler "not only disregarded the clear terms and purpose of the will and trust instrument that Peter created, but they also have intentionally schemed to take for themselves the estate and Seidler trusts' value rights and assets," the complaint reads. "They have done so by misleading Sheel, engaging in conflicted transactions and egregious acts of self-dealing, and when Sheel began expressing concern and questioning their actions, they responded by demeaning and attempting to intimidate her -- including by using trust assets to pay lawyers to threaten her into submission and silence."

"They are trying to erase Peter's vision and legacy," another part of the complaint reads, "as well as falsely cast themselves as Peter's true heirs."

Under Peter Seidler, the Padres became a financial juggernaut, signing and retaining stars and placing the club alongside big spenders such as the New York Yankees and Los Angeles Dodgers. Fans rallied around the team, setting attendance records at Petco Park.

Peter Seidler, grandson of prominent former Dodgers owner Walter O'Malley, was part of a group that purchased the Padres in 2012 and assumed the role of chairman eight years later, becoming the organization's largest stakeholder. The pinnacle of Peter's ownership tenure arrived in October 2022 when the Padres defeated the rival Dodgers -- once deemed by Peter as "the dragon up the freeway that we're trying to slay" -- in the National League Division Series, before being eliminated the following round.

In the first offseason after Seidler's death, the Padres, who by that point had lost their local media contract through Diamond Sports Group's bankruptcy proceedings, decreased payroll by about one-third.

Padres general manager A.J. Preller nonetheless fielded a competitive team in 2024 that won 93 games, made the playoffs for the third time in five years and almost defeated the Dodgers in the NLDS once again.

Seidler often expressed his hope to bring San Diego, a city that lost its NFL team, its first championship. Sheel Seidler believes she is the person who can help bring that dream to fruition.

"While the children and I feel Peter's absence every day, our collective devotion to this team is stronger than ever," Sheel Seidler wrote. "Peter and I always planned, one day, to leave the team to the children. That remains my steadfast commitment. In the meantime, it is my intention to build upon the many recent successes, investing in both the short-term and long-term future of the franchise, and ensuring our dream of multiple championships is fulfilled."

John Seidler's appointment as control person is still pending the approval of three-quarters of MLB's owners. A vote hasn't been scheduled but could occur as early as the upcoming owners meetings in February.

Sheel Seidler's complaint alleges that she and her three children are not welcomed at the ownership suite during games and that Robert and Matthew Seidler have gone as far as to "inform Padres employees that Sheel is not an owner of the team, and that her presence and input are not welcome in interacting with free agents and current players."

Sheel Seidler also claims to have been excluded from charitable events meant to mark Peter Seidler's legacy.

The complaint includes what is said to be a handwritten note from Peter Seidler, listing the priorities for control person in the event of his death, with Sheel and the children at the top.

Sheel Seidler and the children own approximately one-quarter of the Padres, fulfilling MLB's requirement of at least a 15% stake to qualify as a control person. But Matthew and Robert Seidler have "frozen Sheel out," according to the complaint, and "deprived her of the benefits of being the largest beneficial owner of the baseball team, while themselves enjoying the benefits."

The statement from the Seidler trust lauded John Seidler as someone who "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."

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