WHY ATHLETES ARE RUSHING TO SPACs
SPAC IPOs are changing the future of initial public offerings. A SPAC is a company with no existing operations. It’s formed to raise capital at an initial public offering and then acquire one or more operating businesses within a time frame. This year, they’ve raised more than $78.7 billion in gross proceeds, and we’re only halfway through March. Initial investors (aka sponsors), form SPACs to acquire businesses that are within their industry expertise, which then become public due to the acquisition. SPACs are an attractive going-public option for companies that are not ideal candidates for traditional IPOs. Merging with a SPAC is less expensive, and shortens the timeline to go public and trade on an exchange. CultureBanx reported that nearly anyone can start a SPAC, which has been enticing for a cross-section of big-name athletes, Wall Street and Hollywood execs. Read on to learn more about a few of the latest athletes to jump into the booming SPAC market.
NAOMI OSAKA, PATRICK MAHOMES, ROBERT LEWANDOWSKI, JUSTIN VERLANDER, CANELO ALVAREZ
Disruptive Acquisition Corp.
Athlete Advisory Council Members
Disruptive Acquisition Corp. filed for a $250 million IPO with the Securities and Exchange Commission. The SPAC features an “Athlete Advisory Council” to identify potential business targets. The board features Patrick Mahomes, Naomi Osaka, and Robert Lewandowski, Justin Verlander, and Canelo Alvarez Barragan.
SERENA WILLIAMS
Board member
Jaws Spitfire Acquisition Corp
Market Value: $300 million
Serena Williams is the newest board member of Jaws Spitfire Acquisition Corp, a SPAC led by Starwood Capital Chairman and CEO Barry Sternlicht. Jaws Spitfire Acquisition Corp raised $300 million in an initial public offering earlier this month to acquire consumer technology and related technology businesses."I have long admired Barry's leadership and investor acumen, and am thrilled to join the world-class Jaws Spitfire team as a board member," Williams said in a statement. "I look forward to lending my expertise as an entrepreneur, investor and brand builder as we identify high-potential investments in the tech sector."
STEPH CURRY
SPAC team member
Dune Acquisition Corp
Golden State Warriors star Steph Curry is a member of the SPAC team searching for a technology or SaaS company. Curry is a leading endorser for Under Armour Inc and has invested in companies like Slyce, Oxygen, Mos and Guild Education. So-called SPAC king Chamath Palihapitiya is a part-owner in the Warriors and could be linked to future deals Curry does.
ALEX RODRIGUEZ
CEO
Slam Corp
Market Value: $625 million.
Former New York Yankees star Alex Rodriguez joined the roster of wealthy celebrities backing blank-check companies with a filing to raise US$500 million for Slam Corp.
Rodriquez is the chief executive officer of Slam, which intends to pursue businesses in the sports, media, entertainment, health and wellness and consumer technology sectors, according to its filing Thursday with the U.S. Securities and Exchange Commission. Slam specified, though, that it doesn’t intend to target professional sports franchises.
SHAQUILLE O’NEAL
Strategic Adviser
Forest Road Acquisition Corp II
Shaq moved into SPACS alongside one of Martin Luther King Jr.’s sons and three ex-Disney executives. Shaq will serve as a strategic adviser, Marin Luther King III will serve as a director, and the former executives as the entity’s strategic-advisory committee, as well as the chief financial officer. Shaq’s SPAC is called Forest Road Acquisition Corp. and it plans to raise $250 million for deals specifically in the media and technology sector. Both Shaq and MLK III have been involved in media and business for quite some time and their experience will be needed in making their SPAC a success.
COLIN KAEPERNICK
Co-Sponsor and Co-Chairman
Mission Advancement Corp
The quarterback-activist will serve as the co-chairman and co-sponsor of Mission Advancement Corp. The SPAC is looking to raise up to $287 million with the goal of acquiring a billion-dollar, consumer-focused company with the potential to “general a positive social impact”. Kaepernick’s partner in the venture is CEO Jahm Najafi, the founder of the Phoenix-based Najafi Companies, a private equity firm, and a part-owner of the NBA’s Phoenix Suns. The SPAC’s board of directors is also composed entirely of people of colour and a majority of its members are women.