The San Diego Padres are facing more than just offseason challenges as a legal dispute over team ownership unfolds within the Seidler family. Sheel Seidler, widow of late Padres owner Peter Seidler, has filed a lawsuit against Peter’s brothers, Matt and Bob Seidler, accusing them of breaching fiduciary duties and committing fraud in their roles as Executors of Peter’s estate and Trustees of the trust that controls the Padres. The case raises critical questions about the future of the franchise and serves as a reminder of the importance of clear estate and business succession planning.
The Legal Dispute
Sheel Seidler contends that she is the sole beneficiary of the trust controlling the Padres and should be the team’s next control person. Her lawsuit alleges that Matt and Bob Seidler have acted improperly, including attempting to appoint their brother, John Seidler, as control person without her consent.
In response, the Seidler brothers claim that Peter left a clear estate plan that excluded Sheel from serving as Trustee or control person. They argue that the plan explicitly named Matt, Bob, and one other sibling as Trustees, with John as the intended person in control, and that Sheel had previously agreed to these terms in writing.
The Role of a Trustee and Fiduciary Duty
At the heart of the dispute is the role of the Trustees. A Trustee is not necessarily a beneficiary of a trust. Instead, their primary responsibility is to manage the trust’s assets in the best interests of the beneficiaries. Trustees have a fiduciary duty, which requires them to act with loyalty, care, and transparency.
Sheel alleges that Matt and Bob have breached this duty by self-dealing and undervaluing trust assets. If proven true, these actions would represent a violation of their legal and ethical obligations. However, the Seidler brothers maintain that they have acted in accordance with Peter’s instructions, which they claim were designed to protect the long-term stability and success of the Padres.
The Importance of a Succession Plan
This legal battle underscores the critical role of clear estate and business succession planning. While Peter Seidler was widely respected as a visionary leader who transformed the Padres into a competitive franchise, the current turmoil suggests that his estate plan may have lacked the precision needed to prevent such disputes.
Had Peter included detailed instructions in his trust—such as a definitive designation of the decision maker or how decisions are governed or an explicit outline of Trustee responsibilities—this conflict might have been avoided. Succession plans are particularly important for high-value, complex assets like professional sports franchises, where unclear guidance can lead to protracted legal battles and public discord.
Implications for the Padres
The timing of this dispute adds to the uncertainty surrounding the Padres’ future. Since Peter’s passing in late 2023, the team has taken a more conservative approach to payroll and offseason moves, signaling a potential shift in philosophy. Sheel argues that the current trajectory could undermine Peter’s vision of building a championship-caliber team and fostering a strong connection with the San Diego community.
With MLB requiring a control person to hold at least a 15% ownership stake, the Seidler family’s unresolved conflict could force significant changes, including a potential sale of the team. League sources suggest that a permanent control person will be named and approved before the 2025 season begins, with interim control currently held by Eric Kutsenda, a longtime associate of Peter.
Looking Forward
This case serves as a stark reminder that even well-intentioned plans can falter without meticulous attention to detail. For business owners and families alike, clear succession plans and unambiguous estate instructions are essential to safeguarding both personal legacies and professional assets.
As the Padres prepare for the upcoming season, fans are left to hope that the team will emerge from this turmoil with its competitive spirit intact and that Peter Seidler’s vision for the franchise will endure in the hands of its eventual leadership. In the meantime, the Seidler family’s ability to navigate these challenges will likely shape the Padres’ future for years to come.
If you, a friend, or family member need help establishing or updating an estate plan, please reach out to our Intake Department at 760-448-2220 or at https://www.geigerlawoffice.com/contact.cfm. We have offices in San Diego County (Carlsbad) and Orange County (Laguna Niguel), but we assist can families throughout California as well.
