Tom Gores acquires 27% stake in Los Angeles Chargers

Tom Gores, the owner of the Detroit Pistons, has agreed to acquire a 27% stake in the Los Angeles Chargers, as reported by the Associated Press. This deal involves purchasing a 24% share from Dea Spanos Berberian, which includes a portion held in a family trust, along with 1% from each of her siblings. The transaction is expected to be approved by NFL owners at their upcoming meetings in Atlanta. This acquisition marks the end of a contentious three-year legal battle between Spanos Berberian and her siblings regarding the management of the family trust and the Chargers franchise. The Spanos family has faced internal disputes, with lawsuits filed by Spanos Berberian alleging breaches of fiduciary duty and other grievances against her brother, Dean Spanos. Following the deaths of family patriarchs Alex and Faye Spanos in 2018, the family trust became a focal point of contention, holding a significant stake in the Chargers. Gores' purchase is notable as it comes after the NFL's recent approval of private equity funds buying stakes in teams, although Gores is not affiliated with any such fund. Despite acquiring a substantial share, Gores will not have a role in the team's daily operations or a pathway to a controlling stake, as the Spanos family retains a majority ownership. The Chargers franchise, valued at approximately $5.38 billion, has a significant debt load primarily due to its relocation from San Diego to Los Angeles in 2017. This deal reflects ongoing changes in NFL ownership dynamics and the complexities of family-run franchises. Gores, with a net worth of $11.8 billion, is making this investment independently, signaling a potential shift in the landscape of NFL ownership as private equity involvement grows. The resolution of family disputes may also stabilize the Chargers' management moving forward.