Tom Gores to Acquire 27% Stake in Los Angeles Chargers
Detroit Pistons owner Tom Gores has reached an agreement to purchase a 27% stake in the Los Angeles Chargers, according to sources familiar with the deal. The acquisition marks a significant move for Gores, who is expanding his sports ownership portfolio with this investment in the NFL franchise.
Gores’ decision to buy into the Chargers comes amidst a backdrop of family disputes within the Spanos family, who currently hold the majority ownership of the team. The sale of a portion of the team to Gores is expected to bring an end to the contentious legal battles between family members over control of the franchise.
Background on the Deal
The transaction involves Gores acquiring the 24% stake previously held by Dea Spanos Berberian, which includes a 9% share in a family trust that has a 36% ownership in the Chargers. Gores is also purchasing 1% each from shares owned by Dean Spanos, Alexis Spanos Ruhl, and Michael Spanos for estate planning purposes.
The deal is pending approval by NFL owners at their upcoming league meetings in Atlanta, with Gores’ purchase set to be finalized following the necessary approvals. The move is seen as a strategic investment by Gores, who is known for his business acumen and successful track record as the founder of Platinum Equity.
Implications of the Acquisition
With a net worth of $11.8 billion, Gores’ purchase of a stake in the Chargers highlights the growing trend of wealthy individuals investing in professional sports franchises. The NFL’s recent decision to allow private equity funds to buy stakes in teams has opened up new opportunities for investors like Gores to enter the lucrative sports market.
Despite acquiring a significant portion of the Chargers, Gores will not have a direct role in the team’s daily operations or a path to obtaining a controlling stake. The Spanos family will retain the majority ownership of the franchise, with Gores joining as a minority investor.
The Chargers’ move to Los Angeles in 2017, following years of efforts to secure a new stadium in San Diego, has positioned the franchise in a major market with significant growth potential. Gores’ investment in the team reflects his confidence in the Chargers’ future prospects and the value of owning a stake in an NFL franchise.
Overall, Gores’ acquisition of a 27% stake in the Los Angeles Chargers represents a strategic business move that aligns with his broader investment strategy in the sports industry. The deal is expected to have a positive impact on both Gores’ sports portfolio and the Chargers’ long-term growth trajectory.
