Billionaire Tom Gores Acquires Significant Stake in Los Angeles Chargers

Billionaire Tom Gores Acquires Significant Stake in Los Angeles Chargers
In a major development in the NFL ownership landscape, billionaire private equity mogul Tom Gores has acquired a 27% stake in the Los Angeles Chargers for $750 million. This transaction values the team at $4 billion, reflecting a notable 30% discount from its estimated worth of $5.83 billion, as reported by CNBC’s 2024 NFL Team Valuations.
Favorable Deal Negotiation
Gores’ acquisition includes the full 24% stake previously held by Dea Spanos Berberian, as well as an additional 1% from each of her siblings. This purchase gives Gores significant influence in the Chargers’ ownership structure, holding just 3% shy of a controlling stake. Furthermore, Gores was able to secure a substantial discount on the purchase, a benefit often reserved for limited partners, who typically receive 20-25% off market valuations.
Resolution of Family Legal Disputes
The sale also brings to an end a prolonged legal dispute between Berberian and her siblings over the Chargers’ ownership and management, which has been ongoing since 2021. This resolution underscores how personal relationships within family ownership structures can deeply affect business decisions, particularly in the high-stakes world of sports franchises.
“Flip Tax” and League Cooperation
As part of the transaction, Gores will pay a “flip tax” of 10% on the sale price. This fee will be shared among the NFL’s 31 other teams, promoting league-wide financial cohesion and ensuring that the financial interests of all team owners are aligned. The “flip tax” is an additional layer of financial complexity in NFL ownership transfers, highlighting the interconnectedness of team ownership across the league.
Strategic Positioning in the NFL
Gores’ acquisition signals a strategic move in NFL ownership, as the Chargers share SoFi Stadium with the Los Angeles Rams, owned by Stan Kroenke. By securing a minority stake, Gores avoids the operational complexities and financial responsibilities associated with stadium ownership, allowing him to focus on the financial upside without taking on the burdens of direct control.
The Changing Landscape of Sports Ownership
This transaction is emblematic of the evolving nature of sports ownership. Gores’ decision to acquire a minority stake rather than pursuing full control reflects the increasingly sophisticated approaches to ownership in the NFL. As franchise values continue to rise and the industry grows, high-profile acquisitions like this one will likely reshape the business of professional sports for years to come.