Detroit Pistons owner Tom Gores ‘agrees to buy stake in NFL team’

Detroit Pistons owner Tom Gores has agreed to purchase a 27 percent stake in the Los Angeles Chargers, two people with knowledge of the deal revealed on Friday.

The two insiders spoke with AP on condition of anonymity as the purchase has not yet been announced by the team. It is expected to be approved by NFL owners at their league meetings in Atlanta next month.

Sports Business Journal were first to report of Gores’ pending purchase of the NFL franchise.

The 60-year-old has a net worth of $11.8billion, according to Bloomberg. In 1995, he founded Platinum Equity, which has its headquarters in Beverly Hills. And 16 years later he sealed a $325m deal to acquire the Pistons.

Under his ownership, Detroit has only enjoyed two postseason appearances – both of which ended in the first round. 

As part of his 27 percent stake in the Chargers, Gores will be buying the 24 percent held by Dea Spanos Berberian – the sister of controlling owner Dean Spanos – which includes nine percent from a family trust that has a 36 percent stake in the team.

He is also purchasing one percent each from shares owned by Dean and his other sister Alexis, along with their brother Michael, for estate planning purposes.

The transaction ends a bitter three-year fight between Spanos Berberian and her siblings. She filed a lawsuit against Chargers controlling owner Dean 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 and Dea 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 percent of its holdings.

Gores will reportedly be taking a 27 percent stake in the NFL franchise, which is worth $5.38bn

Dean Spanos (pictured) is the current controlling owner in Los Angeles. He will be selling one percent of his shares to Gores

Gores’ purchase comes after NFL owners on September 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 $5.38bn 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 percent of the Chargers with four percent 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 percent debt, mostly due to the franchise relocation agreement with the league.