The Los Angeles Chargers are in talks with Arctos Partners to sell a stake in the NFL team, according to people familiar with the matter.
The LA Chargers could be the third team to strike a deal with a private equity firm, after the NFL changed the investment rules to allow institutional capital to take minority stakes.
Like many NFL teams, the LA Chargers have held discussions with all four of the league’s approved private equity groups, the people said, asking not to be named discussing private information. Talks with Arctos are currently the most advanced, one person said.
A spokesperson for Arctos declined to comment. A representative for the LA Chargers did not respond to a request for comment. The talks are ongoing and may not result in any transaction, the people added. The size of the stake and subsequent valuation could not be learned.
In August, NFL owners loosened some of the strictest ownership rules in professional sports to allow private equity to own as much as 10% of a team.
Arctos was one of the first two private equity firms to buy a stake in an NFL franchise, purchasing a 10% stake in the Buffalo Bills in December. Miami Dolphins owner Stephen Ross also sold a 10% stake in the Dolphins, Hard Rock Stadium, the Miami Grand Prix and the Miami Open tennis tournament, to Ares Management at an $8.1 billion valuation.
Dallas-based Arctos was founded in 2019 and is led by managing partners Ian Charles and David O’Connor. It is one of the best-known sports-focused funds, and the first to win approval to invest in all five major North American leagues.
It also owns stakes in over twenty sports franchises including the Golden State Warriors, the Los Angeles Dodgers, the Pittsburgh Penguins and the Chicago Cubs.
The LA Chargers, owned by various members of the Spanos family, have had a turbulent ownership structure in recent years.
In September, Dea Spanos Berberian agreed to sell her 24% stake to private equity investor Tom Gores, owner of the NBA’s Detroit Pistons, who also bought 1% from each of Berberian’s three siblings.
Berberian, who has been in a long-running dispute with her family and the franchise, agreed to resolve those issues as part of the deal. She had previously attempted to force a sale by filing a petition in 2021 in the Los Angeles County Superior Court.
This story was originally featured on Fortune.com
