For $750 million, Billionaire Tom Gores will acquire a 27% stake in the LA Chargers.

• Tom Gores, a private equity billionaire, has agreed to purchase 27% of the Los Angeles Chargers in the National Football League for $750 million.
• The team's value was discounted by more than 30% in the deal struck at an enterprise value of $4 billion, according to CNBC's Official 2024 NFL Team Valuations.
• Gores also owns the National Basketball Association's Detroit Pistons.

According to two anonymous sources, private equity billionaire Tom Gores has agreed to pay $750 million for a 27% stake in the Los Angeles Chargers at an enterprise value of $4 billion.

The $4 billion valuation of the NFL team is a 30% discount to its value of $5.83 billion, according to CNBC's Official 2024 NFL Team Valuations. Limited partners with no path to control of the team typically receive a 20% to 25% discount in these deals.

Gores may have received a larger discount due to purchasing a significant portion of the Chargers, which was 27%, only 3% away from the necessary ownership stake for a controlling owner. However, he will have limited control over the team's operations as a partner.

The sale of the Chargers franchise is subject to a 10% "flip tax" on the sale amount, which will be the seller's obligation and will be divided equally among the other 31 teams in the league. This agreement was made by the Chargers in 2015 as part of the deal to move the team to Los Angeles, and is similar to the arrangement the Las Vegas Raiders made with the NFL before relocating from Oakland, California.

According to a source, Gores is purchasing the entire 24% stake held by Dea Spanos Berberian, as well as 1% each from Dean, Alexis, and Michael Spanos.

The sale of the team will result in Dean, Alexis, and Michael Spanos owning 69% combined, while Gores and his wife, Holly, will hold 27%, and two long-time limited partners will retain 4%.

The Chargers are still owned and chaired by Dean Spanos, whose father, Alex G. Spanos, purchased the team for $72 million in 1984.

Berberian's legal disputes with her siblings and the Chargers will be resolved entirely through this transaction, which dates back to 2021 when Berberian filed a lawsuit seeking a franchise sale. Despite legal actions filed by Berberian and her family, the lawsuit ultimately failed to proceed.

In 2011, the private equity founder, Gores, along with Platinum Equity, purchased the Detroit Pistons of the National Basketball Association for $325 million. In 2015, Gores bought out Platinum's stake, giving him full ownership of the team's equity.

Gores bought the Chargers stake, which was not associated with Platinum Equity. The NFL did not provide any comment on the deal.

While stadium economics play a crucial role in determining team valuations, Gores appears to favor being a tenant rather than a landlord in sports.

The Red Wings play in Little Caesars Arena, which is also home to the Pistons. The Ilitch family, who own the Red Wings, operate the arena and earn revenue from non-NHL and non-NBA events.

The Los Angeles Rams and the Chargers both play in SoFi Stadium, which is owned by Stan Kroenke. The Rams are worth $8 billion, while the Chargers are worth $5.83 billion, according to CNBC's 2024 rankings.

Renting a stadium has its benefits, including not having to pay for financing or operating expenses, as well as avoiding the responsibility of booking events.

The "flip tax" on Tom Gores' deal for a stake in the Los Angeles Chargers is 10% of the sale amount, and the obligation to pay falls on the seller.