EL SEGUNDO, Calif. – Detroit Pistons owner Tom Gores has agreed to purchase a 27% stake in the Los Angeles Chargers, two people with knowledge of the deal told The Associated Press on Friday.
The people spoke on condition of anonymity because the purchase has not been announced by the team. It is expected to be approved by NFL owners at their league meetings in Atlanta next month.
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Sports Business Journal first reported Gores' purchase.
Gores is buying the 24% share held by Dea Spanos Berberian, which includes 9% that is in a family trust that has a 36% stake in the team. He is also purchasing 1% each from shares owned by Dean Spanos, Alexis Spanos Ruhl and Michael Spanos for estate planning purposes.
The transaction ends a bitter three-year fight between Spanos Berberian and her siblings. Spanos Berberian filed a lawsuit against Chargers controlling owner Dean Spanos in 2021 that alleged breach of fiduciary duty by the Spanos Trust and tried to force a sale.
She filed another lawsuit in 2022 accusing her brother of “misogynistic” behavior, “self-dealing” and repeated “breaches of fiduciary duty."
As part of the sale, Spanos Berberian has agreed to resolve her disputes with the family and the franchise.
Dean Spanos and Berberian were left as co-trustees of the trust following the deaths of Alex and Faye Spanos in 2018. According to 2021 financial statements that were part of court documents, the trust’s stake in the Chargers makes up 83% of its holdings.
The 60-year-old Gores has a net worth of $11.8 billion, according to Bloomberg. In 1995, he founded Platinum Equity, which has its headquarters in Beverly Hills.
Gores' purchase comes after NFL owners on Sept. 1 approved allowing private equity funds to buy stakes in teams. However, this is a purchase by Gores and not affiliated with Platinum Equity.
The Chargers' franchise valuation average is $5.38 billion using this season's figures from Forbes, Sportico and CNBC.
Despite having more than a one-quarter stake, Gores will not have a role in the Chargers' daily business or a path to a controlling stake. The Spanos family owns 69% of the Chargers with 4% controlled by legacy owners from the franchise's early days in San Diego.
Alex Spanos bought the San Diego Chargers in 1984 and Dean Spanos took over managing the franchise in 1994.
The Chargers moved to Los Angeles in 2017 after years of trying to get a new stadium in San Diego. The franchise carries nearly 14% debt, mostly due to the franchise relocation agreement with the league.
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AP NFL: https://apnews.com/hub/nfl