By: Evan Stewart

Inheritance and Professional Sports

No one likes to think about how a family member’s assets will be handled after their death. Inheritance is a complicated, and often messy topic for families. But for the owners of multi-billion-dollar sports franchises, succession can be even more contentious, and likely to lead to fighting and litigation in the public eye.

In recent years, sports franchises like the Baltimore Orioles, Los Angeles Chargers, and Denver Broncos have all had public and heated litigation to make trust and estate determinations following their owner’s death. Sports franchises are ripe for trust and estate litigation because of their scarcity, and their value. There are 152 professional sports organizations in the five major American sports leagues(MLB, NFL, NBA, NHL, and MLS). Of those 152, nearly 100 have valuations in the billions, with the top 50 franchises in value having an average valuation of 5.7 billion. When an owner dies, it is expected that their heir will fight to gain control of their family’s most valuable asset.  

Background for San Diego Padres Inheritance Dispute

On January 6, 2025, the San Diego Padres became the latest sports franchise caught in the middle of a family’s inheritance dispute. Sheel Seidler, widow of former Padres chair and majority owner, Peter Seidler, sued Peter’s brothers Robert and Matthew Seidler, claiming that they were trying to “falsely claim themselves as Peter’s true heirs” to gain control of the team following Peter Seidler’s sudden passing in November 2023.

Peter Seidler was part of the ownership group that purchased the Padres in 2012. He became the majority owner and chair in 2020. Under Peter Seidler, the Padres ended a 14-year playoff drought, saw significant growth in attendance, and signed numerous big-name free agents. Peter Seidler was also a well-renowned philanthropist, raising millions of dollars for local cancer research and addressing homelessness in San Diego, making him a beloved figure among Padres fans. Following his passing, Robert and Matthew Seidler have managed Peter Seidler’s trust and estate. Noticeably absent from any management power is Peter’s widow, Sheel Seidler, who currently holds the largest share in the Padres (25%) and had been closely involved in daily operations and team management for the Padres during Peter’s lifetime.

Sheel Seidler’s Complaint

In her January 6th complaint, filed in Probate Court in Travis County, Texas, Sheel Seidler claimed that the two Seidler brothers breached their fiduciary duties of trust, and committed fraud, conversion, and egregious acts of self-dealing. Among the breaches that Sheel alleges, she alleges that Matthew and Robert have attempted to sell the trusts’ interests at below market value. A sale that she claims the brothers called off once other parties became aware of. She also alleged that the two brothers were preparing to potentially sell or relocate the franchise. Sheel also accused Robert’s wife Alecia of making “multiple racist, profane, and hateful communications” because of her Indian descent, which contributed to the Seidler family’s motivation to remove Sheel from involvement with the Padres. 

In addition, Sheel claims that during Peter’s time as the control person, she was very involved in the team’s operations. However, since his passing, she claims to have been ostracized from the team by Peter’s brothers, including not being allowed into the owner’s box at games.

Sheel Seidler is seeking to enjoin Matthew from acting on behalf of the Seidler trust, remove him as trustee, and void any appointments of a control person made by Matthew. Specifically, she is seeking to enjoin Matthew by naming John the team’s control person. A “control person” has the final say in all team operations, is tasked with ensuring compliance with all MLB rules and regulations, and has ultimate authority and responsibility for making team decisions. In support of her claim that she should be appointed control person for the Padres, Sheel attached a piece of paper in Peter’s handwriting listing Sheel as the first choice for the control person, followed by their children to her initial complaint. However, at this point, it is the only potential evidence that shows Sheel would have been the choice for the team’s control person.

Response from the Seidler Brothers

Matthew and Robert Seidler have not filed a response to Sheel Seidler’s complaint yet, but they are expected to do so in the upcoming weeks. However, on January 7, Matthew Seidler addressed Sheel’s allegations in a letter addressed to “Padres partners and Faithful fans,” where he explained that Peter Seidler’s plan was to name his siblings as the successor trustees of his trust. In the letter, Matthew Seidler called the suit “entirely without merit,” adding that “in 2020, in connection with Peter’s appointment as control person, Sheel agreed in a sworn document that she had no right to be or to designate the Control Person and that should not interfere with the designated Control Person.” Matthew Seidler also called the relocation claim “laughable,” and insisted that it was his goal to continue Peter Seidler’s legacy.

Uncertainty in the Future of the Seidler Litigation

Unfortunately for Padres fans, it is unlikely that this matter will be resolved quickly without a settlement. In 2022, a similar lawsuit was filed between two brothers who claimed to be the heir of former Orioles owner Peter Angelos, who became incapacitated in 2017 due to a heart condition. In this suit, John Angelos was sued by his brother Louis for allegedly conspiring with their mother to push him out of the family’s inheritance, which included ownership of the Baltimore Orioles. This suit, which was filed in June 2022, was settled outside of court in February 2023, and culminated with the sale of the team in March 2024, but impacted the Orioles franchise for nearly a decade.

Based on Sheel and Matthew Seidler’s comments, it does not seem likely that either side is willing to settle with an eventual goal of selling the team. With the Seidler brothers yet to file a response to Sheel’s complaint, and the conflicting evidence of who Peter Seidler intended to succeed him as the Padres’ control person, it is difficult to make a prognosis of how this litigation will end. 

This litigation will revolve nearly exclusively on witness testimony and hearsay regarding meetings and Peter Seidler’s true succession intentions, which is unlikely to lead to a quick resolution. The unfortunate reality is that this litigation may be a dark cloud over the Padres franchise for years to come, overshadowing the legacy that Peter Seidler left with the Padres and San Diego, alike. 

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