Dea Spanos vs. Dean Spanos

[Stinky Wizzleteats+]

San Diego was negotiating with a soccer team on the down low only pretending to negotiate with the Chargers. Spanish had no option in San Diego he could afford. Winning maximizes revenue, period. A championship would pay for hiring the best coach at every position many times over. A championship would pay ten years of Herbert's salary on top of that. So the idea that the Spani don't want to win because it costs to much is flawed. The Spani don't win because they are bad owners and can't get out of their own way.

[Trumpet Man]

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In an attempt to force the sale of the Chargers, a sister of controlling owner Dean Spanos filed a petition in Los Angeles County Superior Court on Thursday. In it, she argues that mounting debt has imperiled the family’s finances and the only solution is to put the NFL franchise on the market.

The petition by Dea Spanos Berberian, who serves as co-trustee of the family trust along with her brother, alleges the trust’s debts and expenses exceed $353 million. In addition, according to the filing, the trust doesn’t have a plan to pay more than $22 million it has pledged to charities.

“Every day that passes increases the risks that the charitable beneficiaries and the Spanos family legacy will suffer irreparable financial and reputational damage,” the petition said.

When the Chargers moved to Los Angeles in 2017 after 56 seasons in San Diego, they faced the daunting task of paying off a $650-million relocation fee to the NFL and building a fanbase in a market crowded with college and professional sports. They now have an emerging superstar at quarterback in Justin Herbert and share the $5-billion SoFi Stadium with the Rams.

But the 156-page filing raises questions about the future of the franchise owned by the Spanos family since 1984 and reveals a family dispute that until now has played out in private.

In a November 2019 letter included with the court filing, Dean Spanos vowed to his three siblings that he would retain an investment bank at the end of the 2024 season in an effort to find a new owner. Berberian contends the situation is too dire to wait.

According to the filing, Berberian “attempted numerous times and numerous ways” to resolve the dispute. That included mediation with a retired L.A. County Superior Court judge that didn’t work.

“Dean refuses to consider a sale of the Trust’s Interest of the Chargers, insisting that the Co-Trustees continue to borrow more and more, and to force the charities and beneficiaries to wait for years and to ‘hope’ while Dean speculates further on a football team,” the petition says. “Dean has failed to present any plan to address the Trust’s bleak financial picture, because there is no other plan than the one urged 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 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 is one of our family’s most important legacies, just as it was for our parents,” the statement said. “Unfortunately, our sister Dea seems to have a different and misguided personal agenda.”

They added: “Operations of the Chargers will be entirely unaffected by this matter.”

Adam Streisand, the attorney for Berberian, declined to comment. Streisand previously represented Steve Ballmer in his $2-billion purchase of the Clippers and Jeanie Buss in the family legal fight that cemented her as controlling owner of the Lakers. An NFL spokesman also declined to comment on the petition.

Although Forbes valued the Chargers at $2.6 billion last year, Berberian’s petition describes the team as a “rare trophy asset” and notes that “the price a buyer is willing to pay is often not dictated by any economic metric.” The NFL recently finalized massive new media rights deals that could be worth more than $10 billion per year, something the filing asserts “will certainly attract potential buyers.”

The petition notes reports that Amazon.com founder Jeff Bezos, worth an estimated $180 billion, is interested in becoming an NFL owner, and the legal filing says “the Chargers could be a perfect opportunity.”

Nearly four decades ago, the family patriarch, Alex Spanos, purchased a majority interest in the San Diego Chargers for $40 million.

Each of his four adult children — Alexandra Spanos Ruhl, Michael Spanos, Dean Spanos and Berberian — owns 15% of the Chargers. The family trust controls 36% of the team, with the remainder owned by non-family members. After Alex Spanos and his wife, Faye, died in 2018, Dean Spanos, the oldest of the four children, and Berberian were left as the sole co-trustees.

The stake in the Chargers makes up 83% of the trust’s holdings. The petition paints a bleak picture of its finances, estimating an annual shortfall of $11 million with little cash flow 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 tax.

“Rather than seeking to monetize illiquid assets in order to pay debts and liabilities, and make distributions to beneficiaries, the Co-Trustees have principally been borrowing, including borrowing money from one bank to pay another,” the petition says. “Meanwhile, the 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 steps to sell the trust’s share of the Chargers and invoke a provision of trust law that would require the team’s other shareholders to do the same.

Patrick Goodman, a probate law expert who teaches at UCLA, believes the petition raises serious issues.

“A trustee for the trust owes a fiduciary duty to the beneficiaries regardless of how co-trustees might sentimentally view the asset,” he said. “It doesn’t matter how attached the co-trustees are to the idea of owning a football team if that will cause the beneficiaries to lose their money.”

Dean Spanos has controlled day-to-day management of the Chargers since 1994. His sons have key roles, too. John oversees the team’s football operations and A.G. heads the business side.

“Dean will likely contend that if he is only allowed to use his position as a Co-Trustee to be a speculator … to double and triple down on bad decisions of the past, he can turn things around because there are positive developments at the NFL level that should benefit the Chargers as well,” the petition says. “He also has support from other family members and beneficiaries (though not all).”

Before the Chargers moved to L.A. — the relocation led one columnist to brand Dean Spanos as the “most hated man” in San Diego — he kept a copy of his father’s autobiography in his office. A page was dog-eared for quick reference. It underscored the importance that family played in his decisions.

“A solid family foundation: This is the basis of everything,” the essential passage said. “Without family, you will be left emotionally empty, no matter how fabulous your accomplishments.”

https://www.latimes.com/sports/charg...-chargers-sale

Bravo on this thread I just found especially what I highlighted.

I 100% agree with this dude.

It does not matter the siblings say that they can buyout Dea. Nope.

The trust is insolvent and spends more than it takes in by $11 million per year with no end in sight. That is a legal bullseye.

You have to stop the bleeding because the next step is bankruptcy after insolvency which is not a good look for the NFL or future coaching prospects either.

[Boltinloudguy]

San Diego was negotiating with a soccer team on the down low only pretending to negotiate with the Chargers. Spanish had no option in San Diego he could afford. Winning maximizes revenue, period. A championship would pay for hiring the best coach at every position many times over. A championship would pay ten years of Herbert's salary on top of that. So the idea that the Spani don't want to win because it costs to much is flawed. The Spani don't win because they are bad owners and can't get out of their own way.

TRUTH!!! I have no faith that this team will win a Championship with Spanos as the owner. Do a I hope I’m wrong, ABSOLUTELY.

The only way I believe they can win a Championship with Spanos as the owner. Is if Dean gets rid of John Boi and any family members dealing with football decisions. Hire the people that deserve it with a proven track record. John Boi DOES NOT have the track record.

A glimmer of hope is maybe they put the team up for sale after the 2024 season. It’s going to be a long 2 years.

[Lefty2SLO]

Scott Kaplan's take 4 days ago on what to expect going forward.

https://www.youtube.com/watch?v=nsLNoHKOzXw

A formers Chargers exec was texting Kaplan and loving the recent melt down.

Last Saturday was the 6th year anniversary of San Diego getting the Spanos middle finger they were headed out of dodge.

Scott Kaplan has had an axe to grind for a long time in regards to this team. I put him in the same category as Rex Ryan in that respect, so anything these guys say I take with a grain of salt. It's too bad there's so much opportunity lately for them to pile on.

[richpjr]

Scott Kaplan has had an axe to grind for a long time in regards to this team. I put him in the same category as Rex Ryan in that respect, so anything these guys say I take with a grain of salt. It's too bad there's so much opportunity lately for them to pile on.

Ryan dislikes the Chargers. Kaplan hates the Chargers. But the guy did get fired for insulting the way a female announcer looks and then refusing to apologize for it so I’m not sure he is doing anything than looking for clicks.

[Lefty2SLO]

Ryan dislikes the Chargers. Kaplan hates the Chargers. But the guy did get fired for insulting the way a female announcer looks and then refusing to apologize for it so I’m not sure he is doing anything than looking for clicks.

Accurate distinction between Ryan & Kaplan.

[Trumpet Man]

looking back to the beginnings of the Chargers,I don't think they ever had a top notch owner.

Barron Hilton

[jamrock]

San Diego was negotiating with a soccer team on the down low only pretending to negotiate with the Chargers. Spanish had no option in San Diego he could afford. Winning maximizes revenue, period. A championship would pay for hiring the best coach at every position many times over. A championship would pay ten years of Herbert's salary on top of that. So the idea that the Spani don't want to win because it costs to much is flawed. The Spani don't win because they are bad owners and can't get out of their own way.

I agree with the last sentence but not the rest

[chargeroo]

Barron Hilton

agree - I stand corrected.

[Trumpet Man]

You are missing the most important factor. The city of San Diego worked so hard to chase the Chargers out of town, no way in hell they let them back.

Would an arsonist welcome in the fire department? Does the thief welcome in the police?

No, you must embrace the pain the city caused you. Only then can you understand what needs to happen going forward.

36 pages later and I finally caught up in this thread so late to the party........

I do not disagree the city gave Spanos the finger as well. The city NEVER produced a TERM sheet for Dean to approve. That was bullshit on the cities part (the mayor & city council). The funding starting getting sketchy by the County as well. The city nor the county was not negotiating in "good faith" with the Spanos clan. The NFL plus Dean had $500 million in the kitty for stadium construction. I don't blame Dean for telling the mayor to go fuck himself he was out of here. I was positive Dean would sell shortly after the move and cash out the appreciative team value being in LA. Next, there would be expansion of the league by 4 teams at the last CBA negotiations. I predicted an avenue for London, Mexico, LA and San Fran to acquire expansion teams and the Chargers move back to San Diego with a new owner and new SnapDragon stadium paid for by others and no new taxes or votes.

It took the collective clout of the County of San Diego NOT the city to get San Diego (the Murph) built and Friars Road installed yet the county never got the opportunity to vote. It was bullshit even the marketing for the city wide vote was bullshit.

Anyway old history not to be re-litigated - - - - -

I am surprised no one has posted the lawsuit filed by Dea ?

One thing I have learned is not to trust what someone reads and interprets unless I read it for myself.

Here is the actual lawsuit and a copy of the Alex Spanos Trust (156 pages).

https://ca-times.brightspotcdn.com/f...-berberian.pdf

PS...I posted this link in another thread and has since been altered by the attorneys I suspect. The Spanos addresses have now been blacked out. I encouraged fans to send Dea a Christmas card since the attorneys made a mistake (I presume) disclosing addresses.

[jamrock]

You guys are high. Dean didn’t want to stay in San Diego despite whatever public pronouncements he and his attack dog Fabiani said. They had their eye on LA for years. If they had wanted to stay in Mission Valley from the jump it would have happened but they rope a doped with the downtown and other locale bullshit.

[Trumpet Man]

You guys are high. Dean didn’t want to stay in San Diego despite whatever public pronouncements he and his attack dog Fabiani said. They had their eye on LA for years. If they had wanted to stay in Mission Valley from the jump it would have happened but they rope a doped with the downtown and other locale bullshit.

Pffft....if the transient occupancy tax would have passed, Dean would have hit the jackpot on the taxpayers dime with a new stadium and stayed and avoided the headaches and debt incurred in a move. The tax was a non starter with the voters BUT if it passed there was no reason to move and an NFL owner has his mostly taxpayer paid palace. What a coup for a billionaire and NFL bragging rights.

His sons were born here and were against the move as well. Dean just did not get his free lunch in a stadium and paid back the league with the soccer stadium pissing off the NFL and more........