Moorad Reaches Agreement To Buy Padres, Resigns From D'Backs

Moorad Would Have Largest Financial Stake In Padres

Padres Owner John Moores and his wife, Becky, have "reached 'an agreement in principle' to sell the club" to a group led by former D'Backs General Partner & CEO Jeff Moorad, according to Tom Krasovic in a front-page piece for the SAN DIEGO UNION-TRIBUNE. Moorad Friday resigned from the D'Backs "so that he could exploit an 'exclusive negotiating window' that he obtained" from John and Becky Moores, who are in the midst of a divorce. Moorad: "There is an agreement in principle that I think all parties are comfortable with. Beyond that, I think a little time needs to pass and we need to focus on putting the finer points of the deal together." Moorad added that "as part of a 'small but significant' ownership group, he would have the largest financial stake" in the Padres. The Padres Friday in a statement said, "Any transaction that might result from such negotiations would likely be completed in the first quarter of 2009." An MLB source said that the deal with Moorad, if completed, will exceed $400M; John Moores paid about $80M for the Padres in December '94. Another MLB source said that he "expects that the Moores will get at least $80[M] in cash as part of the sale and relief from transferring some $200[M] in debt related mostly to construction of Petco Park." Krasovic noted "about $140[M] of stadium bond debt is set at an 8[%] rate that cannot be prepaid." Padres CEO Sandy Alderson and GM Kevin Towers did not comment on the potential deal. Alderson, who is under contract through '09, recently said that he "does not own a stake" in the Padres, "contrary to some reports." Towers is under contract through 2010, and Padres Exec VP/Baseball Operations Paul DePodesta, who reports to Alderson, is under contract through 2011. Moorad declined to comment when asked "how he would shape the Padres operations" (SAN DIEGO UNION-TRIBUNE, 1/3). Moorad said that the Moores would "continue to have a share of the team's ownership for a yet undetermined number of years" (AP, 1/2).

D'Backs Name Hall President & CEO Following Moorad's Departure

D'BACKS RESTRUCTURE: In Phoenix, Nick Piecoro reported the D'Backs named President Derrick Hall President & CEO following Moorad's departure. Moorad "hopes to have the Padres transaction completed within the next three months," and at that point he "will have to sell his stake" in the D'Backs. A D'Backs source said that Moorad's stake is "in the 15-20[%] range," and D'Backs Managing General Partner Ken Kendrick said that Moorad's stake "likely will be bought back by the club's four remaining general partners." Piecoro noted MLB rules "compelled Moorad to resign on Friday in order to proceed with the purchase of the Padres" (ARIZONA REPUBLIC, 1/3). MLB.com's Steve Gilbert reported Moorad "will not return" as D'Backs CEO if his bid for the Padres is unsuccessful. Kendrick said Hall "is our CEO, we're proud to have him and we're going to move forward." Gilbert reported the transition from Moorad to Hall "should be seamless." Hall: "I think it's business as usual." Gilbert noted D'Backs GM Josh Byrnes now will report to Hall rather than Moorad (MLB.com, 1/2). The ARIZONA REPUBLIC's Piecoro notes Byrnes and Hall "seem unlikely to leave anytime soon," as both "have ownership stakes" in the D'Backs. Kendrick said that in Moorad's absence, the D'Backs "will not look to add another high-ranking executive and instead will spread duties among the senior leadership team" of Hall, Byrnes, Exec VP & CFO Tom Harris and Exec VP & COO Tom Garfinkel (ARIZONA REPUBLIC, 1/5).

Writer Wonders How Padres Sale Will  Affect Attempts To Trade Jake Peavy

HEADING WEST: In San Diego, Tim Sullivan noted Moorad Friday "provided a sneak preview of his Padres' stewardship that raised more questions than it resolved but was nonetheless reassuring." The Padres, after a season of "largely absentee ownership and an offseason spent in strip-mine mode," appear poised to "start climbing out from the wreckage of John Moores' divorce toward a non-specific but more stable future." If Moorad and his ownership group "have the means to buy the ballclub, their first order of business ought to be restoring the shattered faith of the Padres' many disaffected fans," and the "quickest way to achieve that would be to declare that the fire sale is finished and to plow enough cash into the product to show sincerity." Sullivan wrote, "Memo to Bud Selig: This is one of those cases where the best interests of baseball should compel the Commissioner to protect the interests of fans who helped build Petco Park on the expectation that it would solidify the franchise." Since the rationale for attempting to trade Padres P Jake Peavy has been "based on the assertion that the Padres could no longer count on ownership's cash contributions, further payroll cuts preceding an anticipated franchise sale would and should be seen as a cynical violation of the public trust" (SAN DIEGO UNION-TRIBUNE, 1/3). The SAN DIEGO UNION-TRIBUNE's Krasovic noted the "expectation among a few prominent player-agents is that Moorad, a former agent himself, would attack the amateur draft with greater financial vigor than the Moores regimes generally have." Agent Scott Boras: "Jeff believes in going after draft picks" (SAN DIEGO UNION-TRIBUNE, 1/4). ESPN.com's Buster Olney reported Moorad is "putting up some of his own dollars, but has apparently collected a group of partners that will create the financial backing." Historically in MLB's small markets, like San Diego, the "best possible situation is for at least one major money guy, who has the kind of cash to absorb some hits without blinking." The problems in small- and mid-markets have "typically come up if the lesser partners must be leaned on in lean times -- because if they are taking financial hits, they will clamor for change -- as in payroll slashing" (ESPN.com, 1/3).

LASTING LEGACY: The ARIZONA REPUBLIC's Piecoro wrote the D'Backs' stability "will be a big part of Moorad's legacy." The club in '02 needed a $160M cash infusion from ownership "in order to avoid a potential bankruptcy," but the D'Backs now "appear to have a sturdy foundation." While the team "lost money last season, it turned small profits in previous seasons," and the club "has financing plans and payment schedules to pay down its debts." The team is "spending what it brings in." D'Backs General Partner Dale Jensen said that Moorad has been credited "not only for leading the team out of turmoil, but for being 'the architect of an amazing team' of executives." Moorad: "I'm proud of the fact that we've been able to stabilize the franchise financially. ... I think that, all in all, we reinvigorated the franchise and I believe that they're positioned for years to come" (ARIZONA REPUBLIC, 1/4).