On the latest Sporticast episode, Eben Novy-Williams is joined by Sportico‘s Corey Leff to discuss some of the biggest sports business stories of the week, including the ice-cold market for special purpose acquisition companies, or SPACs.
SPACs were one of the biggest stories in sports business last year, as team owners, media executives and entrepreneurs rushed to pool money, for the purpose of acquiring a company that they could take public. Some of those SPACs executed deals—with Vivid Seats ($1.95 billion), Genius Sports ($1.5 billion) and Seat Geek ($1.35 billion) among them—but many are yet to find a target. With the 24-month deadline fast approaching, some that were initially looking at the sports and entertainment sectors are starting to look further afield.
The hosts discuss how the SPAC market went from red hot to ice cold. That includes changes specific to SPACs and some wider consequences of a broader market shift. They also discuss what happens when a SPAC fails to find a target and has to unwind.
Lastly, the duo talks about the many ways in which smaller sports leagues like the Big3 are utilizing new technology to attract fans, and Apollo Global’s $1.25 billion proposal for Liga MX, the latest example of a giant private equity firm seeking an opportunity in sports.