Yahoo Finance Updates for 2022

Tom Gores, owner of the Detroit Pistons, has reportedly agreed to purchase a 27% ownership stake in the Los Angeles Chargers. The deal is subject to approval from NFL owners and has not been finalized yet, according to sources familiar with the situation.

If completed, the transaction would end a years-long saga involving the four children of Alex Spanos, the longtime owner who bought the Chargers in 1984 for $72 million and died in 2018. Financial terms of the transaction were not available. Last month, Sportico valued the Chargers at $5.22 billion, 18th in the NFL.

More from Sportico.com

NFL Offenses Sag, but QB Play Isn't a Drag on TV Ratings

NFL Owners Want in on Own Rings of Honor

One Year Later, Taylor Swift Effect Stretches Far Beyond NFL

Representatives for the Chargers, Pistons and Gores declined to comment. Sports Business Journal was the first to report the news.

Alex Spanos’ four kids—Dean, Dea, Michael and Alexandra—own 15% of the Chargers on their own, with another 36% total held in a family trust. In 2021, Dea Spanos Berberian filed a petition in Los Angeles County Superior Court to try and force a Chargers sale. A year later, she filed a petition that accused her brother and fellow co-trustee, Chargers chairman Dean Spanos, of breaching his fiduciary duty to the trust. Berberian also accused Dean and their brother, Chargers vice chairman Michael Spanos, of orchestrating a “campaign to punish, belittle and humiliate” her.

Gores is buying Berberian’s 15% personal stake and her 9% stake in the family trust, as well as 1% from each of Dean Spanos’ other children. The deal would leave each Spanos with a 24% stake, while Gores will hold 27%. Dean, Alexis and Michael are selling 1% apiece for estate planning purposes, according to someone familiar with the details.

The transaction would end all of Berberian’s legal disputes against her siblings and the Chargers.

Berberian has explored the sale of her Chargers stake for more than a year. A deal with Clearlake Capital Group co-founders Behdad Eghbali and Jose Feliciano fell apart over the control issue. The Gore transaction does not include any path to control, and Dean Spanos will continue to maintain full control of the Chargers.

The Chargers had the second-lowest revenue in the NFL last year, as they are a tenant at SoFi Stadium where Stan Kroenke and the Los Angeles Rams control almost all of the revenue streams. But playing in the NFL’s second-biggest market is a boost to the value, on top of the $400 million-plus annual check from the league’s rich TV deals.

Gores bought the Pistons for $325 million in 2011. The team has made the playoffs only twice under Gores and finished with the NBA’s worst overall record two straight years, including a 28-game losing streak last season. The Pistons fired coach Monty Williams one season into his record-breaking six-year, $78 million contract. The Pistons are valued at $3.1 billion, 25th in the NBA, according to Sportico.

Story continues

The deal does not impact Gores’ role as owner of the Pistons.

Gores is worth $9.4 billion, according to Forbes. In 1995, he founded L.A.-based private equity firm Platinum Equity. Last month, NFL owners approved investment by a handful of PE firms, but this transaction is a personal investment for Gores and does not involve Platinum.

The deal is expected to go up for a vote at next month’s NFL owners meetings.

Best of Sportico.com

NFL Private Equity Ownership Rules: PE Can Now Own Stakes in Teams

Most Expensive Sports Memorabilia and Collectibles in History

Why Sports Tickets Are More Expensive Than Ever

Sign up for Sportico's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.

View comments