Detroit Pistons owner Tom Gores has agreed to purchase a 27% stake in the Los Angeles Chargers, as reported by multiple sources on Friday.
Gores is set to acquire a minority share of the NFL franchise, which includes the 24% owned by Dea Spanos Berberian and 1% owned by the other Spanos siblings: Dean, Michael, and Alexis Spanos Ruhl.
Sources close to Gores have confirmed that the deal has been agreed to in principle. However, the final approval from NFL owners is still pending. The transaction is expected to be finalized within the next two months.
Forbes valued the Chargers at $5.1 billion in August, with each of the siblings agreeing to sell 1% for estate planning purposes, according to ESPN’s Kris Rhim and Michael Rothstein.
NEWS: Billionaire @DetroitPistons owner and Platinum Equity founder Tom Gores has a deal in place to buy 27% of the NFL’s @chargers, a deal intended to settle a long-running feud between Chargers owner Dean Spanos and his sister. https://t.co/cPoZHtVZGd
— Ben Fischer (@BenFischerSBJ) September 27, 2024
Further, the Spanos family has faced financial challenges since moving the team from San Diego to Los Angeles in 2017. Gores’ minority stake aims to resolve a dispute between Dean Spanos, Dea Berberian, and their other siblings.
Berberian had filed several lawsuits dating back to 2021, including one seeking to compel the sale of the Chargers. As part of the current arrangement, Berberian has agreed to drop her legal actions against the Chargers and Dean Spanos, per Rhim and Rothstein.
In June 2022, Berberian accused Dean Spanos of “misogynistic” behavior, “self-dealing,” and repeated breaches of fiduciary duty in a lawsuit filed in San Joaquin County Superior Court.
Detroit Pistons owner Tom Gores’ decision to invest in the Los Angeles Chargers
Alex Spanos, Dean’s father, purchased the San Diego Chargers in 1984 and appointed Dean as team president and CEO in 1994. Following his father’s passing in 2018, Dean assumed full ownership.
The legal dispute emerged in April 2021 when Berberian petitioned the Los Angeles County Superior Court to force the sale of the team.
Despite the acquisition, Dean Spanos will retain complete control of the franchise. He and his siblings will collectively own 69% of the team, with non-family members holding the remaining 4%.
The Chargers will be Gores’ second sports franchise ownership, following his purchase of the Pistons in 2011 and buying out Platinum Equity’s shares to become the sole owner in 2015.
Furthermore, the NFL franchise represents a personal investment for Gores, distinct from his involvement with Platinum Equity. He will not have any governance rights over the team as part of the agreement.
As per ESPN’s report, this marks the first known transaction since the league allowed private equity firms to acquire up to 10% of passive stakes in franchises in August. However, a private equity firm is not part of this particular deal.
According to his biography, Tom Gores is an alumnus of Michigan State University and a long-time Los Angeles resident. His net worth as of September 2024 is $9.4 billion, ranking him 287th in the world according to Forbes.
The Pistons will begin their training camp on Monday, with the season opener scheduled for October 23 at home against the Indiana Pacers.
