#InTheNews – LA Chargers Sale Dispute

The NFL Team, “Los Angeles Chargers” are currently facing a dispute wherein the sister of Dean Spanos (Chairman of the team), wants the Spanos Family Trust to sell their ownership rights of the Chargers. Dean Spanos is the co-trustee of the Spanos Family Trust that owns 15% of the team and controls 36% of the group. His sister wants to sell their ownership rights to the NFL team as the alleged financial burden of the NFL team is proving to irrecoverable. The co-trustee Dean Spanos is not acting in the best interest of the Trust by not selling off their loss-making share of the NFL Team. Meanwhile, in his reply to his sister’s filing, Dean Spanos has argued that their share in Chargers carries much sentimental value for the Spanos family. They have owned 15% of the team since the 1980s, and that he hopes to turn the ownership profitable in upcoming years. Dean Spanos is also ready to buy his sister’s share in Chargers to prevent the sale of their share in Chargers. However, “hope” is not enough to save a trust. The trustee’s primary goal should be to fulfill their fiduciary duty towards the beneficiaries. An emotional attachment to the NFL Team that the co-trustees are trying to save does not help the co-trustee, Dean, fulfill his fiduciary duty towards the Trust’s beneficiaries. Therefore, Dean’s sister’s case seems to be based on a fundamental principle of the law of trusts.

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