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In an attempt to force the sale of the Chargers, a sister of majority owner Dean Spanos filed a petition in Los Angeles County Superior Court on Thursday, claiming that the growing debt had put the family’s finances at risk and that the only one solution was to bring the NFL franchise to the market.
The petition from Dea Spanos Berberian, who is a co-trustee of the family trust with his brother, alleges that the trust’s debts and expenses exceed $ 353 million. In addition, according to the filing, the trust does not intend to pay more than $ 22 million that it has pledged to charities.
“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 petition says.
When the Chargers moved to Los Angeles in 2017 after 56 seasons in San Diego, they faced the daunting task of paying the NFL a $ 650 million moving fee and building a fan base in a crowded market. university and professional sports. They now have an emerging superstar at quarterback Justin Herbert and share the $ 5 billion SoFi stadium with the Rams.
But the 156-page dossier raises questions about the future of the franchise owned by the Spanos family since 1984 and reveals a family dispute that so far has taken place in private.
In a November 2019 letter attached to the court file, Dean Spanos swore to his three siblings that he would keep an investment bank at the end of the 2024 season in an effort to find a new owner. Berberian maintains that the situation is too dire to wait.
According to the record, Berberian “tried many times and many ways” to resolve the dispute. This included mediation with a retired LA County Superior Court judge that did not work out.
“Dean refuses to consider a sale of the Chargers Trust interest, insisting that the co-trustees continue to borrow more and more, and forcing charities and beneficiaries to wait years and years. ‘hope’ while Dean speculates more about a football team, ”the petition reads. “Dean has not presented any plan to remedy the dire financial situation of the Trust, as there is no other plan than the one advocated by [Berberian]. Dean simply refuses to discuss it. … His plan is hope.
In response to the filing, Dean Spanos and two of his siblings released a statement on Thursday pledging to keep the team in the family. They said that, if necessary, they were prepared to buy their sister’s stake in the franchise.
“For the three of us, the Chargers are one of the most important heirlooms of our family, just like our parents,” the statement said. “Unfortunately, our sister Dea seems to have a different and misguided personal agenda.”
They said “shippers’ operations will not be affected by this matter at all.”
Adam Streisand, Berberian’s lawyer, declined to comment. Streisand previously represented Steve Ballmer in her purchase of the Clippers and Jeanie Buss in the legal fight that cemented her as majority owner of the Lakers.
While Forbes valued the Chargers at $ 2.6 billion last year, Berberian’s petition described the team as a “rare trophy” and noted that “the price a buyer is willing to pay is often dictated by no economic metrics. ” The NFL recently finalized massive new media rights deals that could be worth more than $ 10 billion a year, which the record says “will definitely attract potential buyers.”
The petition noted that Amazon.com founder Jeff Bezos, worth an estimated $ 180 billion, would be interested in owning the NFL and said “the Chargers could be a perfect opportunity.”
Almost four decades ago, family patriarch Alex Spanos bought a controlling stake in the San Diego Chargers for $ 40 million.
Her four grown children – Alexandra Spanos Ruhl, Michael Spanos, Dean Spanos and Berberian – each own 15% of the Chargers. The family trust controls 36% of the team, with the rest belonging to non-family members. After the deaths of Alex Spanos and his wife Faye in 2018, Dean Spanos, the eldest of four children, and Berberian remained the sole co-directors.
The interest in the Chargers represents 83% of the trust’s holdings. The petition paints a grim picture of its finances, estimating an annual deficit of $ 11 million with little cash or reason to believe the numbers will improve. The debt includes $ 164 million “associated with the trust’s interest in the chargers” and at least $ 75 million in estate taxes.
“Rather than seeking to monetize illiquid assets in order to pay off debts and liabilities, and make distributions to beneficiaries, the co-trustees have mainly borrowed, including borrowed money from one bank to pay off another.” , says the petition. “Meanwhile, trust 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.”
The petition asks the court to order Berberian and Spanos to take action to sell the Chargers’ trust stake and invoke a provision in the trust law that would require other team shareholders to do business. even.
Dean Spanos has controlled the day-to-day management of the team since 1994. His sons also have key roles. John oversees the team’s football operations and AG runs the commercial side.
“Dean will probably argue that if he is only allowed to use his position as co-trustee to be a speculator … to double and triple bad decisions from the past, he can change things because there are positive developments.” at the NFL. a level that should also benefit shippers, ”the petition says. “He also enjoys the support of other family members and beneficiaries (but not all).”
Before the Chargers moved to Los Angeles – the move led a columnist to refer to Dean Spanos as San Diego’s “most hated man” – he kept a copy of his father’s autobiography in his office. One page was dog ear for quick reference. This underlined the importance that the family played in its decisions.
“A solid family base: it is the base of everything”, says the essential passage. “Without a family, you will be left emotionally empty no matter what your accomplishments are.”
Times writer Sam Farmer contributed to this report.
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