Even with all the major North America sports leagues playing, team owners probably have part of their attention cast on the stock market. That’s because at least eight of them are involved in SPACs that have filed to go public since the start of July. SPACs are blank check companies that go looking for businesses to buy – and in the process provide their management sponsors with a chance at a strong payday.
SPACs will probably be the most common form of companies going public in 2020, surpassing IPOs, after a largely somnolent decade. “The last couple of years, SPACs have been coming back in a big way,” said Jay Ritter, a professor at the University of Florida business school who tracks public stock offerings.
Here’s a rundown of the SPACs that have filed to go public this quarter, limited to those with an interest in sports, a related field or have involvement of notable sports business figures. As a group, they’ve raised – or are seeking – more than $8.5 billion in capital to deploy.
Sports-Focused
RedBall Acquisition Corp.
Capital: $575 million (raised)
RedBird Capital’s Gerry Cardinale and Moneyball pioneer Billy Beane started RedBall for the purpose of acquiring a sports team within the next two years. Most signs point to a soccer club somewhere in Europe as their preferred target. It went public in August.
Sports Entertainment Acquisition Corp.
Capital: $350 million (seeking)
A gaggle of NFL veterans including Eric Grubman, John Collins and Roger Goodell’s brother Timothy are working now to price the IPO of their SPAC. The group indicated they are more focused on a sports-adjacent acquisition to grow as a consumer sports-product platform like ESPN, Fanatics or On Location – three firms their prospectus names as examples. Despite the NFL background of nearly everyone involved, the group isn’t necessarily focused on football.
Bull Horn Holdings Corp.
Capital: $75 million (seeking)
Bull Horn filed last week to raise $75 million in its quest to find a company in the sports and entertainment business that its management can help thrive. It’s led by Rob Striar, CEO of M Style, a sports marketing and brand firm that has worked with Concacaf and the NHL Winter Classic. Michael Gandler, CEO of Italian soccer club Como 1907 and Baron Davis, the former NBA star, are also involved.
Sports Owners
Social Capital Hedosophia Holdings IV, V and VI
Capital: $350 million (seeking), $650 million (seeking), $1 billion (seeking)
Golden State Warriors minority owner Chamath Palihapitiya has three new SPACs coming to market, all filed on the same day two weeks ago. Like his prior SPACs, they are looking for companies that have some sort of transformational possibilities using technology. Palihapitiya said on CNBC two weeks ago that he is looking at making investments in online sports. “I do think sports is the next big category in streaming.” His last SPAC bought a house-selling app earlier this month.
FG New America Acquisition Corp.
Capital: $225 million (seeking)
Joe Moglia was a football coach turned financial services executive, who then turned football coach again. Mid-career he left banking to return to his football roots and was head coach of Coastal Carolina for six seasons between 2012 and 2019. Now he’s a financial services executive again and chairman of TD Ameritrade. Former United Football League executive Nicholas Rudd is on the management team, too. This SPAC is looking at financial services companies.
Landcadia Holdings III
Capital: $500 million (seeking)
Houston Rockets owner Tilman Fertitta has led multiple SPACs. His latest is searching for “consumer, dining, hospitality, entertainment and gaming industries, including technology companies operating in these industries.”
Avanti Acquisition Corp.
Capital: $500 million (seeking)
Co-owner of Aston Villa Nasserf Sawiris is looking for a European company with strong connections to the U.S. with his SPAC. The target is likely industrial: Sawiris is an Egyptian billionaire co-owner of Orascom. He runs its OCI arm, which is a large fertilizer producer in the U.S.
Foley Trasimene Acquisition Corp II
Capital : $1.2 billion (seeking)
NHL Vegas Knights owner William P. Foley made his billions in financial services and insurance. His latest blank check is seeking companies “core to the economy.”
Horizon Acquisition Corp.
Capital: $544 million (raised)
Dodgers and Sparks minority owner Todd Boehly is focused on financial services with his SPAC. His primary business is Eldridge, a Connecticut conglomerate that holds dozens of investments including a number of holdings in eSports as well as DraftKings.
BowX Acquisition Corp.
Capital: $420 million (raised)
Sacramento Kings chairman Vivek Randavivé believes his SPAC will be able to leverage connections in the “sports and entertainment world, including athletes and entertainers” to help promote whatever company it buys. It’s looking in technology, media and telecommunications.
Yucaipa Acquisition Capital
Capital: $300 million (raised)
Penguins co-owner Ron Burkle is a billionaire from private equity and leveraged buyouts. The SPAC didn’t name any particular industry as a target, stating more broadly that it’s seeking a business that can be turned around. Burkle often has turned to grocery store chains for his reclamation projects.
East Resources Acquisition
Capital: $300 million (raised)
CEO Terry Pegula was able to buy Buffalo’s Bills and Sabres and fund the launch of Penn State’s hockey program thanks to his acumen in buying up shale natural gas properties. His SPAC seeks to do more of the same.
Investors and Personalities
Decarbonization Plus Acquisition Corp
Capital: $300 million (seeking)
Erik Anderson, chairman of TopGolf Entertainment, a golf-focused tech company that also has retail venues like driving ranges, is CEO of this SPAC. It’s looking for a business involved in cleantech.
FirstMark Horizon Acquisition
Capital: $300 million (seeking)
Looking for a technology company, this SPAC is led by Rick Heitzmann, who brought investments in DraftKings, StubHub and Riot Games to fruition. DraftKings CEO Jason Robins is on the board too.
Tailwind Acquisition
Capital: $300 million (raised)
Esports and gaming and betting are two areas where the company is searching for acquisitions. Wisdom Lu, on the SPAC’s board of directors, specializes in technology, media, sports and wellness at investment firm Bryant Stibel, a venture capital fund launched by Kobe Bryant.
Vistas Media Acquisition
Capital: $100 million (raised)
Digital gaming, media and eSports are one area this company is looking to spend its blank check. The company’s management, led by F. Jacob Cherian, has a significant experience in India and with cryptocurrencies.
NewHold Investment Co.
Capital: $150 million (raised)
NewHold is looking for firms that can be transformed by technology. It’s likely looking in the industrial world, but its board of directors have some sports connections. Neil Glat, President of the New York Jets from 2012-2019, is also on the board of ASM Global, the world’s largest stadium and arena operator. Another director, Brian Mathis, used to be on the board of Bell Sports, the bicycle helmet maker.
Ascendant Digital Acquisition Corp.
Capital: $414 million (raised)
Focused on what it calls “the attention economy,” including esports, CEO Mark Gerhard is likely looking at video games as a growth opportunity. He’s cofounder of Playfusion, a next-gen video game developer in the U.K.
(This story has corrected the spelling of Chamath Palihapitiya’s name in the subsection Sports Owners.)
