Fair or Foul? Brother of Late Padres Owner Pushes Back on Widow's Lawsuit Allegations
A venerable leader dies. In the aftermath, the family squabbles for control of his empire, each claiming they were designated to assume the mantle of power. While this sounds like the plot of a "Succession" or "Game of Thrones" episode, a real-life drama involving the control of the San Diego Padres baseball team continues to play out with the filing of a lawsuit claiming fraud, fiduciary breach of trust, conversion, and more.
Who are the family members that are vying to assume the throne? What parts of the lawsuit are causing an uproar? Why are Sheel Seidler and Matt Seidler at loggerheads with one another? Read on to learn more about the battle to control the team also known as the Swinging Friars.
Control Group
Until his death on November 14, 2023, Peter Seidler was an investor in the group that purchased the San Diego Padres in 2012 for $800 million. He became the team's control person in 2020. The control person of a Major League Baseball (MLB) team is accountable for the operation and compliance of the club with all MLB rules and regulations.
It's a powerful position to hold. Essentially, the control person carries the ultimate authority and responsibility to make all decisions concerning the team. Peter held the position until November 14, 2023, when he died after a long battle with non-Hodgkin's lymphoma. Eric Kutsenda, one of Peter's business partners, was appointed as the interim control person three days later.
Peter was one of 10 siblings, and he named his brothers Robert (Bob), Matt, and John as executors of his estate and trustees of several trusts. These included those involving his widow, Sheel Seider. One thing the plaintiff and the defendants agree on is that Peter was beloved. Beyond that, things get a bit ugly.
Who's on First?
In the lawsuit filed in Texas against Bob (as a former trustee) and Matt, Sheel accuses them of the following:
- Fiduciary breach of trust (disclosure, loyalty, competence, and distribution)
- Fraud
- Conversion of trust property
- Money had and received
- Gross negligence
Her suit also claims that her husband intended for her to be installed as the control person of the Padres and that the running of the team would become the legacy of her and their children. For proof, the filing includes a handwritten list that is allegedly Peter's choices to succeed him as the control person. Sheel is listed first, followed by their three children.
According to Sheel, Matt sent her a letter on October 15, 2024, as a response to her request to be named as the control person for the Padres. The letter states that Matt believes Sheel did not "have the experience, skills, and financial acumen necessary to fill the responsibilities of this important role." She also accuses Bob's wife Alecia of making hateful and racist comments about Sheel's heritage.
The lawsuit followed the announcement on December 21, 2024, that Peter's brother John would become the new control person for the Padres. The appointment is subject to approval by the owners of the other 31 MLB teams. On Peter's purported control person list, John was ranked eighth.
Matt refuted Sheel's accusations in a letter posted on the Peter Seidler Trust site. He denied the suggestion that there's been any attempt to relocate the team. Sheel, he claims, was never an employee of the Padres. Matt argues his brother was adamant that the trustee of his trust would choose the next control person. According to Matt, the trust agreement excludes Sheel from ever becoming the trustee.
In the letter, Matt notes that Sheel signed a sworn document in 2020 when Peter was named the control person of the Padres. According to Matt, it states that Sheel "had no right to be or to designate the control person and that she would not interfere with the designated control person."
A Grand Slam or a Swing and a Miss?
Between the bullpen full of charges, the simmering animosity between the litigants, and the right to control an MLB franchise estimated to be worth $2 billion, there is likely no quick resolution on the horizon. The case may hinge on the possible authentication of the list supposedly written by Peter.
While the battle rages on in court, the fans will continue to support their team's quest to win a World Series. The next one will be their first, but hope blooms eternal.
Related Resources
- Minor Leagues Present a Major Challenge for MLB's Antitrust Exemption (FindLaw's Legally Weird)
- What Is a Trust? (FindLaw's Learn About the Law)
- How To Choose an Executor for Your Will (FindLaw's Estate Planning)
