Dea Spanos Berberian has judicially requested to put up for sale a third part of the shareholding in the team for sale alleging financial losses
LOS ANGELES – The sister of Los Angeles Chargers primary owner Dean Spanos is petitioning a California court to put a third of the equity stake in the team up for sale.
Dea Spanos Berberian filed a petition Thursday in Los Angeles County Superior Court, contending that mounting debt from the franchise is creating an estimated annual loss of nearly $ 11 million for the family trust.
Forbes estimates that the franchise that Dean Spanos has run since 1994 is worth about $ 2.6 billion. Getty Images
According to the petition, the trust held debt and expenses of 353 million dollars until September 30. Almost half of that (164,778,931) is due to the fund’s investment in the Chargers. The trust’s stake in the Chargers amounts to 83 percent of its investments.
“The trust is so focused on owning a minority stake in a professional football team that the beneficiaries have no choice but to depend solely on the success or failure of the team,” according to the legal action. “Maintaining the status quo is not an option.”
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The promotion includes a letter in which Dean Spanos said he would hire an investment bank that allows any member of the family to sell their stake. Berberian says in the petition that that process would take too long.
“Each day that passes increases the risks that quality beneficiaries and the Spanos family legacy suffer irreparable reputational and financial damage,” the petition states.
Spanos, Berberian, Alexandra Spanos Ruhl and Michael Spanos each own 15 percent of the franchise, with 36 percent managed by the family trust, and 4 percent owned by non-family members. Spanos and Berberian were appointed co-trustees after the deaths of Alex and Faye Spanos in 2018.
The Chargers have been owned by the Spanos family since 1984, when Alex Spanos acquired the franchise. Allsport
Alex Spanos acquired the San Diego Chargers in 1984, and his son Dean took over running the franchise in 1994.
Dean Spanos, Michael Spanos and Spanos Ruhl issued a statement noting that the team’s operations would not be affected by the court proceeding, and that they intend to fight the action.
“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 legacies of our family, as it was for our parents. Unfortunately, our sister Dea seems to have a different and wrong personal agenda, “the statement said. “If Dea no longer wishes to belong to the family legacy, the three of us are ready to acquire his share of the franchise, according to the rights that our agreements grant us.”
Forbes valued the Chargers at $ 2.6 billion in its most recent franchise rankings. The trust stake could be worth as much as $ 850 million, after Daniel Snyder recently acquired the remaining 40.5 percent of his minority partners in the Washington Football Team for $ 875 million.
The value of the franchise is expected to grow, with the NFL having agreed to new media rights contracts that will pay more than $ 10 billion annually starting in 2023. The Chargers also moved to SoFi Stadium last season, and Revenues are expected to grow once fans are allowed into the stadium.