Forbes estimates Padres’ value at $1.75 billion, but says losses have grown

The Padres lost for winning.

According to Forbes, at least.

The magazine’s valuation of the team actually rose 11 percent year over year to $1.75 billion. But within its reporting, Forbes estimated the Padres had operating losses of $55 million in 2022. That was $23 million more than it lost in ‘21, according to Forbes’ estimates.

The Union-Tribune reported last month that while the Padres would be generating record revenues and becoming a payor in MLB’s revenue-sharing program in 2024, they were still spending more than they were bringing in.

The Padres are hoping sustained winning and star players help them continue to grow revenue to the point that they are operating in the black.

“Of course, you’ve got to get to profitability,” CEO Erik Greupner said in February. “And I think we’re in that transitional phase right now of really learning and understanding how much we can grow revenue.”

The Padres advanced to the National League Championship Series in 2022 and continued to add to their payroll for 2023. When the season begins March 30, the Padres are projected to have the third-highest payroll in the major leagues behind on the two New York teams.

The last time a team not in one of the league’s top-10 media markets had a payroll ranked in the top five was the Detroit Tigers in 2016. The 2008 Tigers were the last such team to be ranked as high as third in payroll.

San Diego is MLB’s 17^th-ranked media market, and the Padres’ franchise value ranks 17^th. The Yankees are valued by Forbes at an MLB-high $7.1 billion with the Dodgers ranked second at $4.8 billion.

Padres Chairman Peter Seidler was part of the ownership group that bought the Padres for $600 million in 2012. Seidler assumed control of the team in November 2020 and bought out the remainder of former principal owner Ron Fowler’s interest in the team last March. There remain several minority investors in the franchise.