Kroc Accepts Developer’s Offer for the Padres : George Argyros, of Newport Beach, Says He Will Keep the Team in San Diego

The Kroc Era in San Diego baseball neared an end Thursday when it was announced that Joan Kroc had accepted an offer from developer George Argyros of Newport Beach to purchase the Padres.

A price was not divulged, although Kroc reportedly was asking for $50 million to $65 million for the club that her late husband, Ray, purchased for $12 million in 1974.

Argyros, the owner of the Seattle Mariners since 1981, must sell that franchise because of a major league rule prohibiting an individual from having an interest in more than one club.

The sale of the Padres is subject to approval of the American and National leagues and Commissioner Peter Ueberroth. The transaction must be approved by three-fourths of the 12 National League owners and a majority of the 14 American League owners. The process may take as long as 90 days and may not be concluded until an owners’ meeting in June.

Argyros, 50, decided to make his bid for the Padres because of their proximity to his home and his other business interests.

“My decision is related to where I spend my time and where it makes sense to have my interests,” he said. “My family is my No. 1 priority. We live in Newport Beach and my businesses are in San Diego County and Orange County primarily. I couldn’t afford the time it took in Seattle. I couldn’t serve two masters.”

Argyros is involved principally in the development of apartment units and commercial office space. He was a principal shareholder in AirCal, which is being sold to American Airlines.

Negotiations between Kroc and Argyros began several weeks ago, according to Argyros. He signed an offer a few days ago and it was completed Wednesday.

Kroc announced that the Padres were for sale in November, explaining that she wanted to concentrate her time on charitable causes. She had inherited the club when Ray Kroc died on Jan. 14, 1984.

Beth Benes, Kroc’s attorney and the Padre general counsel, conducted the negotiations. She said that “many, many” parties expressed interest but she would not elaborate on the negotiations.

Kroc herself appeared only briefly at the beginning of the press conference when she introduced Argyros and his wife, Judie.

“We wanted to find a buyer committed to the team in San Diego,” she said. “At least three or four individuals were disqualified because they indicated interest in moving the franchise.”

Argyros, she said, assured her that the club would not be moved.

According to Argyros, nothing was included in the purchase agreement to prohibit the franchise from being moved.

“We’re dealing with honorable people,” he said. “I wouldn’t sell Seattle if I was interested in moving a team. I hope to win the World Series right here with the San Diego Padres.”

The Mariners, which Argyros purchased for $13 million, did not come close to a World Series in his six years as owner. They never finished higher than fourth place and went through five managers in that period, the latest being former Padre Manager Dick Williams.

Technically, Argyros remains the Mariners’ owner and will not take charge of the Padre operation until the sale is approved. This became clear when Argyros was asked about the possibility of acquiring free-agent outfielder Tim Raines. It was the first question he was asked.

“I really can’t control that,” he said, “because I don’t own the team. It might take 90 days to get the transaction approved. Hopefully, we can get it done much sooner. The current owners are the owners until the franchise is sold.”

Should Argyros be approved as the Padre owner before he can sell the Mariners, provision would be made to avoid a conflict of interest.

“It might be necessary, in fact, to put George’s shares (of the Mariners) in a trust and prohibiting any trading or dealing between the two teams,” American League President Bobby Brown said.

In the meantime, Argyros said, the Padres would be in the hands of Kroc and Ballard Smith, the club president. He said any decisions, including any involving Raines, would be made by them.

Once the transaction is complete, Smith will depart as club president. He has held the position since 1979, but he has said that he wants to pursue other business interests.

Argyros, who met with the front-office staff after the press conference, said no sweeping changes are planned.

“I have high regard for (executive vice president) Dick Freeman,” he said, “as well as (General Manager) Jack McKeon. They will carry on in their current positions.”

Club executives, he said, would be given freedom to do their jobs.

“I really believe in choosing very good people,” he said. “I have a very direct relationship with my key executives, and I expect them to run the business. I get the best people, give them the support they need and then get out of the way. But I know where the buck stops.”

A critical chore for the Padres is the negotiation of a new stadium lease, replacing the one that expires after the 1988 season. Negotiations are under way, but Argyros said he would like some input in this regard.

“I want to take a good look at that,” he said. “Assuming this (transaction) goes through, I want to be involved in negotiating the lease with the city.”

Earlier he said: “This community understands how important baseball is and baseball understands the importance of a good working relationship with the city.”

Under Kroc’s ownership, the Padres have had a mixed relationship with the city and fans. Indeed, but for Kroc’s purchase of the Padres in 1974, the franchise would have been moved to Washington, D.C. The club hit its peak when it won the National League pennant in 1984, a few months after Ray Kroc’s death.

The most controversial year has been the last one. The Kroc family, owner Joan and son-in-law Smith, were at odds during the fiasco over whether Dick Williams would return as manager. Smith suspended pitcher Rich Gossage because of remarks critical of ownership. Pitcher LaMarr Hoyt was arrested three times on drug charges and finally released after being sentenced to jail. Still lingering is the question of whether Raines will be signed.