SAN DIEGO -- This has not been the ideal offseason for the San Diego Padres. Coming off their loss in the National League Division Series to their archrivals the Los Angeles Dodgers and little to no roster additions, the Padres face some unanswered questions pertaining to next season’s aspirations.
However, the team’s situation became even more convoluted after Sheel Seidler, the widow of former Padres owner Peter Seidler, filed a lawsuit in regards to controlling the ball club.
On Monday, Sportico reported that Seidler filed the suit in Texas, where her and Peter reside, claiming that Bob and Matt Seidler, two of Peter’s brothers, underwent breaches of fiduciary duties and fraud as trustees of Seidler Trust that controls the Padres.
Sheel posted a statement on X on Monday in which she states that the suit was “a last resort” and is proceeding with the complaint “to protect my family and to continue to carry out Peter’s legacy.”
A day later, Matt released a letter stating that the claims made against him and Bob Seidler “are entirely untrue, and we will vigorously defend ourselves against them.”
She also believes that the two brothers have “irreconcilable conflicts of interest” of her late husband.
“As trustees of Peter’s trust, Bob and I have made every effort to honor his confidence in us by being true to his expressed desires and by following the exact terms of his trust agreement and the Padres’ governing documents,” Matt said in his letter from the Peter Seidler Trust.
Before Peter’s death in November 2023, Sheel claims that he wanted his wife to be the team’s control person and later be passed down their three children.
Yet in Matt’s statement, he said that Peter didn’t want to assign the next Control Person himself. Peter named three of his siblings to serve as his successor trustees in the order of: Bob, Matt, and John (the sibling’s oldest brother).
“Peter left the designation of the next permanent Control Person in the hands of the trustee of his trust, rather than naming a specific individual,” Matt said. “This approach is entirely consistent with Peter’s style… he believed that important decisions are best made by those who had earned trust by working hard and, most importantly, always doing right by people.”
Also in the letter, Matt said that Peter never mentioned Sheel as a potential option for Control Person to him or the other two siblings. Sheel, as well, signed a sworn document acknowledging that she had no right to acquire or to point out the Control Person, and agreed to not pursue any legal actions that would limit or effect the power of the team or the duties of the appointed Control Person.
“Additionally, Peter’s trust agreement specifically excludes Sheel from ever serving as trustee and gives her no role or rights with respect to the Control Person designation,” Matt said. “During Peter’s leadership of the Padres, he never chose to make Sheel an executive, director, officer, or employee of the Padres.”
Matt claims that Sheel told him that John (Seidler) would be the “optimal Control Person for the Padres franchise to fulfill Peter’s vision.”
Along with suggesting the two brothers of “falsely cast themselves as Peter’s true heirs”, the lawsuit also alleges Bob Seidler's wife of “racist, profane and hateful” comments targeted at Sheel.
"Sheel is well aware that this individual faces difficult personal health challenges and, most importantly, that the hurtful language does not at all reflect the thoughts or feelings of any other family member," Matt said.
Sheel also filed that there was also a proposed plan that would possibly relocate the San Diego Padres.
“This is completely false. It is also laughable,” Matt said. “The San Diego fans are the best in baseball, and Petco Park is the best ballpark in MLB. To clarify the record without ambiguity, relocating the Padres from San Diego has never been discussed or contemplated.”
According to the complaint, Sheel is asking the court to have Matt Seidler removed as the trustee and transfer control of the trust property under a receivership. Sheel also claims that Matt and Bob withheld funds from her and was denied from being named Control Person, via a letter by Matt, because she lacked the “experience, skills and financial acumen” to run a major league team.
However, Sheel said that she was involved with the team that included discussions about the team, day-to-day operations, positional hirings and free agent signings.
In addition to the litigation was a copy of a supposed handwritten note written by Peter Seidler with the title “Future Control Person” that lists the names of 14 people displaying Sheel and their three children in the first four spots.
Sheel and her children also own nearly one-quarter of the team, which not only makes them the largest shareholder, but fulfills the MLB’s requirement of at least a 15% stake to qualify as a control person.
The lawsuit also says that Sheel and her children are excluded from the team and other luxury expenses such as being in the owners box and interacting with current and future players. Nonetheless, Matt said that her and Peter’s children are still welcomed with open arms as part of the Padres family.
According to Matt’s letter, John, who has been a minority owner with the Padres since 2012, will be assigned as the next Padres’ Control Person, subject to Major League Baseball’s approval.
“I believe his business experience, proven leadership qualities, and love for the Padres equip him to guide the team as Peter’s successor,” Matt said, “We have every reason to believe John’s appointment will be welcomed by the other Padres owners and expeditiously approved by MLB and the owners of the other MLB clubs.”
In 2012, Peter Seidler and a group of investors, consisting of Seidler family members, purchased the San Diego Padres. Peter is the grandson of former Dodgers owner Walter O’Malley.