Tom Gores, owner of the Detroit Pistons, has reached an agreement to acquire a 27% ownership stake in the Los Angeles Chargers, as confirmed by multiple sources to ESPN. This deal includes purchasing 24% from Dea Spanos Berberian and 1% each from the other Spanos siblings, Dean, Michael, and Alexis Spanos Ruhl. The final approval from NFL owners is pending, with the expectation that it will be discussed at the upcoming league meetings in Atlanta.
The sale of this stake marks the conclusion of a challenging period for the Spanos family, particularly Dea Spanos Berberian, who had filed multiple lawsuits, including one seeking to compel the sale of the Chargers. However, as part of this agreement, Berberian has agreed to drop her legal actions against the team and Dean Spanos. The specifics of the deal have not been disclosed by the NFL or the Chargers.
Dean Spanos will retain complete control of the franchise, with him and his siblings owning 69% of the team. The remaining 4% is held by non-family members. This transaction will be a personal investment for Gores, separate from his private equity firm, Platinum Equity. It is noteworthy that Gores will not have any governance rights over the Chargers as part of this arrangement.
This potential acquisition by Tom Gores is significant as it would be his second ownership stake in a sports franchise, following his purchase of the Detroit Pistons in 2011. Gores initially acquired the Pistons with Platinum Equity but later bought out the firm’s shares to become the sole owner. The Chargers deal represents a new venture for Gores, indicating his interest in expanding his sports ownership portfolio.
The involvement of private equity firms in sports ownership has been a topic of discussion in the industry. In August, the NFL approved the use of private equity firms to acquire passive stakes of up to 10% in franchises. However, it is important to note that the Chargers deal with Gores does not involve a private equity firm. This marks the first known agreed-upon potential transaction post the NFL’s approval of private equity involvement.
The Spanos family has a longstanding history with the Chargers, dating back to Alex Spanos’s acquisition of the team in 1984. Dean Spanos assumed control of the franchise in 1994, leading to a legal dispute within the family in recent years. Berberian’s legal actions against Dean Spanos, including allegations of “misogynistic” behavior and breaches of fiduciary duty, have been a point of contention.
In response to the accusations made by Berberian, the Spanos family released statements asserting their unity and commitment to honoring their parents’ and grandparents’ wishes regarding the ownership and operation of the Chargers. Despite the internal conflicts, the family remains steadfast in their support for Dean Spanos and the continuation of the team’s legacy.
The sale of the ownership stake to Tom Gores represents a turning point for the Chargers and the Spanos family, providing a resolution to the legal disputes that have plagued them in recent years. The agreement signals a new chapter for the franchise under Gores’s partial ownership and Dean Spanos’s continued leadership.
With the final approval pending from NFL owners, the acquisition by Tom Gores is poised to bring about changes in the ownership structure of the Chargers. As the deal progresses, the implications for the team’s operations and future direction will become clearer. Stay tuned for updates on this developing story as it unfolds.
