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LOS ANGELES – The sister of owner-controlling Los Angeles Chargers, Dean Spanos, is asking a California court to list a third of the team’s stake for sale.
Dea Spanos Berberian filed a petition Thursday in Los Angeles County Superior Court claiming the franchise’s growing debt creates an estimated annual loss of at least $ 11 million for the family trust.
According to the petition, the trust had debts and expenses of $ 353 million as of September 30. Almost half ($ 164,778,931) is due to the trust’s investment in the Chargers. The trust’s interest in the Chargers represents 83% of its holdings.
“Confidence is so heavily concentrated in owning a minority stake in a professional football team that beneficiaries have no choice but to depend almost solely on the rise or fall of the team,” says the petition. “Maintaining the status quo is not an option.”
The file includes a letter in which Dean Spanos said he would hire an investment bank that would allow any family member to sell their stake. Berberian said in the petition that it would take too long.
“With each passing day, the risk that the charitable beneficiaries and the legacy of the Spanos family will suffer irreparable financial and reputational damage,” the file says.
Spanos, Berberian, Alexandra Spanos Ruhl and Michael Spanos each own 15% of the franchise, with 36% being managed by the family trust and the remaining 4% owned by non-family members. Spanos and Berberian were left as co-trustees of the trust after Alex and Faye Spanos passed away in 2018.
Alex Spanos bought the San Diego Chargers in 1984 and his son Dean took over the franchise in 1994.
Dean Spanos, Michael Spanos and Spanos Ruhl have released a statement saying the team’s operations will not be affected by the court filing and that they intend to challenge the petition.
“Our parents, Alex and Faye, wanted the Chargers to be part of the Spanos family for generations to come. For the three of us, the Chargers are one of the most important heirlooms of our family, just like our parents. , our sister Dea seems to have a different and erroneous personal agenda, “the statement read.” If Dea no longer wishes to be part of this family heirloom, the three of us are ready to buy her share of the franchise, as our agreements us. give the right to do so. “
Forbes valued the Chargers at $ 2.6 billion in its recent franchise ranking. The trust’s share could be worth nearly $ 850 million, after Daniel Snyder recently bought the remaining 40.5% of his minority partner’s stake in the Washington football team for $ 875 million.
The value of the franchise is expected to rise as the NFL has agreed to a new media rights deal that will bring in more than $ 10 billion a year from 2023. The Chargers also moved to SoFi Stadium last year and are expecting that revenue will increase once fans are cleared. .
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