Article by Nicholas Player (editor)
Today I'll be looking at a couple of SPAC's that have been tangling their way through the Reddit and internet grapevines in the last week and also looking at a fresh new SPAC to hit the already crowded market today. These two SPACS look to be creating a perfect storm in the sports market.
The flying Eagle acquisition company has only been around for 3 months since it launched but has generated a lot of interest in the last week in regards to a possible target or 2 lined up for this company. It is one of the darlings of the SPAC world as it comes from the same management team that took the successful Draft Kings merger public. Due to the quality and success of their team the target acquisition is going to be a sports related or entertainment based company. The main rumoured contenders for the merger are two of the hottest private sports companies in the States.
Endeavour: The fastest growing sports representation and management company that represents the NFL and NHL talent, Bought Miss Universe from the Donald and has recently acquired Global Esports management representing Esports personalities ( one of the fastest growing entertainment sectors) and also acquired the cage fighting giant UFC. This is one meaty company that nearly went public in a 7 billion deal in 2019. That was cancelled in September after a frazzled Peloton IPO nosedived. Could they be eyeing a far cheaper and more lucrative IPO via a reverse merger?
The second candidate for a takeover is Sports radar: A far more likely combination that this blank cheque company might go for. A global leader in sports data for betting sites, sport federations and state authorities. Information is the new gold (think Facebook/google) and Sports is a multi billion dollar industry. Many hope it goes this way buy we can not be sure until a merger. The reason behind this tailwind is that FEAC and Sports Radar have the same investors and a smattering of high profile names from Michael Jordan to Mark Cuban.
For the last few months FEAC have been the SPAC on their own freeway driving towards their targets with their shiny acquisition vehicle and expert driver and pit team with not a care in the world, nearly at the last lap, there is some dust in their rear view mirror and the sound of something else on their freeway and its coming up fast on the inside lane....
Redball Acquisition Corp ( RBAC.U
The man behind 'moneyball', a baseball exec Billy Beane has just launched his own $500 million Dollar SPAC. The company are looking to merge with the sports, media and analytics sectors putting them in direct competition with FEAC. This SPAC is coming from the man who revolutionised the baseball industry and is one of the big players in the sports sector Stateside.
Billy Beane has a track record and proven experience with data analytics regarding sports that stretches past Baseball to Soccer and even the software industry. He is on the board at Net suite, a data analytics and cloud computing company.
My senses are that Redball might try to pip FEAC to the sports radar spot. If it doesn't then there will be another sports based SPAC down the line. Billy is a man with a vision and is very data orientated. He looks like the perfect chap to take a home run with an acquisition such as sports radar (forgive the pun) the company is however, a new SPAC so it will take a longer time to acquire a target than FEAC
Normally these SPACS can take up to 2 years to find a suitor but with the hype surrounding these types of backdoor IPO's the time has sped up significantly... if anything we could be behind the muffled sounds of a bidding war behind the closed doors or the boardrooms regarding this deal. Due to the management of both of these SPACS they are definitely on the watchlist for now. The only problem with their targets is that they are dealing with a dormant industry. Covid 19 has thrown a spanner into the works for now but by 2021 we expect to see a sharp rise in anything sports related.
This article is based only on my opinions and are not the views of SpacSpy.com
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