José E Feliciano, co-founder of Santa Monica-based private equity firm Clearlake Capital, is nearing a $3.9bn acquisition of the San Diego Padres, according to reports by the Wall Street Journal and the Athletic.

The deal would set a new record for a Major League Baseball franchise sale, eclipsing the $2.42bn that hedge fund manager Steve Cohen paid for the New York Mets in 2020.

Feliciano, whose estimated net worth stands at $3.9bn, is leading the bid alongside his wife, Kwanza Jones. The transaction is subject to approval by 75% of MLB’s 30 owners.

The winning bid saw off competition from a field that included Everton owner Dan Friedkin, Detroit Pistons owner Tom Gores, and Golden State Warriors owner Joe Lacob. The sale brings to a close a protracted and at times turbulent process, initiated in November 2024 when the Seidler family, who have owned the Padres since 2012, announced they were exploring a sale. 

For Feliciano and Clearlake, the acquisition would represent a significant extension of the firm’s sports investment strategy. Clearlake, together with co-investors Mark Walter, Todd Boehly, and Hansjorg Wyss, already holds more than 60% of Chelsea FC, following its high-profile acquisition of the Premier League club in 2022. 

The record price tag is set to reverberate well beyond San Diego. With the average MLB franchise now valued at $2.95bn, up 13% year-on-year according to CNBC figures, the deal will intensify debate around baseball’s forthcoming labour negotiations. 

The current collective bargaining agreement expires on 1 December, with owners expected to push for a salary cap. The MLB Players Association, for its part, has pointed to rising franchise valuations as evidence that a cap is unnecessary.

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