The Wall Street Journal (paid subscription required) reports that a group led by private-equity billionaire Jose E. Feliciano and his wife, Kwanza Jones, is close to finalizing a deal to buy the San Diego Padres. The sale price is a Major League Baseball record $3.9 billion. The deal will surpass the amount Steve Cohen paid ($2.42 billion) for the New York Mets in 2020.
The Padres were put up for sale last November by the Seidler family. The ownership situation has been in question since the death
of primary team owner Peter Seidler.
The high-profile power couple outbid three other prospective ownership groups, led by Premier League Everton club owner Daniel Friedkin, Detroit Pistons owner Tom Gores and Golden State Warriors owner Joe Lacob, in the final round of negotiations.
Feliciano and Jones have an impressive portfolio
Feliciano is the co-founder and managing partner of Clearlake Capital, a private equity firm in Santa Monica. According to Forbes, his net worth is 4.4 billion. His firm partnered with Los Angeles Dodgers part-owner Todd Boehly to purchase the Premier League’s Chelsea FC in 2022.
Jones is the founder and CEO of Supercharged, a media and personal development company. Together with her husband, she created the Kwanza Jones & Jose E. Feliciano Initiative to lead several philanthropic projects.
It is a foundation that invests and partners with non-profit and for-profit entities dedicated to social change through education, entrepreneurship, financial equity and social empowerment. In 2017, the foundation provided up to $500,000 in matching funds for Hurricane Maria relief efforts in Puerto Rico.
Chelsea owners’ fractured partnership
The BBC was the first to report some friction between Boehly and Clearlake Capital. The relationship deteriorated over the club’s business strategy. Feliciano believes in developing young talent that will keep the club in contention for a long period.
Boehly is more of a flamboyant club executive. It is not beneath him to walk into the locker room and dress down his players following a disappointing loss. He is a firm believer in fast resolutions to on-field issues, as the cost should never matter. Unfortunately, Boehly’s player transfer spending sprees resulted in inconsistent team play in matches.
The rift has led the Chelsea fanbase to believe their beloved club is the laughingstock of the Premier League. They have no confidence that the ownership group will make the right football-related moves to improve the roster.
The boardroom stalemate could be coming to an end. Boehly has only a 12 percent stake in the club, but is resigned to the fact that he will not gain full control of Chelsea. Boehly intends to fight for stadium redevelopment, despite the fractured relationship with Feliciano’s Clearlake Capital. Keep in mind, they control 61.5 percent of the club. Boehly had better act fast, as his five-year term as Chelsea’s chairman ends in 2027.
What is the Friars’ future
Once the deal is finalized, speculation will begin about whether the new ownership group will become aggressive in adding payroll to improve the roster. Currently, the Padres are 10th in the majors with a $201 million payroll.
Feliciano understands the impact a sports franchise has on the local community. He feels maintaining a contending roster earns trust from your fanbase. Plus, it allows the Padres to play in front of sellout crowds and continue to set new league attendance records.
The first order of business for Feliciano is to rebuild the minor league system. Recent trade deadline moves have left the talent cupboard bare. You may not see historical free-agent contracts being handed out, but his business model does allow for astute, financially responsible player moves that add value to the roster.
The expected deal will need league approval by at least 75 percent of the other owners.
