BIG3 basketball league to go public via $290 million SPAC merger

Ice Cube's BIG3 basketball league agreed to go public through a merger with Graf Global Corp. at a $290 million pre-money valuation, becoming the first US professional sports league to list on a public exchange.

"Leading a new generation of emerging sports, BIG3 connects basketball to culture, fans and our team communities," said O'Shea Jackson, Sr., co-founder and chief executive officer of BIG3. "Going public is our next step. This lifts us to a bigger stage, accelerates our international potential and gives our fans a way to grow with us."

The deal with Graf Global Corp. (NYSE American: GRAF), a special purpose acquisition company, values BIG3 at $290 million before potential earnouts tied to share price performance. All existing equity and equity-linked interests are expected to convert to common stock at closing, which is targeted for the fourth quarter of 2026. The combined company will be named Big3 Basketball Holdings Inc. and trade under the ticker "TONT."

The transaction requires at least $50 million in net cash proceeds from GRAF's trust account, which held about $249 million as of June 10. GRAF shareholders must approve an extension of the business combination deadline by June 27, with redemption rights available both at the extension vote and before the final shareholder vote on the merger. The listing opens a rare avenue for public market investors to own equity in a professional sports league, a category that has historically been limited to private ownership groups.

BIG3 enters its ninth season on June 20 at the Intuit Dome in Los Angeles, with the championship scheduled for Aug. 22 at the Spectrum Center in Charlotte. The league fields eight city-based teams, with four owned by BIG3 — Boston, Chicago, Dallas and the DMV — and four sold to independent owners in Detroit, Houston, Los Angeles and Miami. The Houston franchise sold for $10 million in 2024 to Eric Mullins of Lime Rock Resources and Milton Carroll, former chairman of CenterPoint Energy Inc.

The league averaged more than 550,000 viewers on CBS last season and generated more than 1 billion social media impressions. Games are distributed internationally through partners including Migu in China and TV Globo in Brazil. Legendary coaches include Julius Erving, Nancy Lieberman and Gary Payton, while Hall of Famer Clyde Drexler serves as commissioner.

Investors in the deal include John P. Angelos, whose family previously owned the Baltimore Orioles; Peter Briger, executive chairman of Fortress Investment Group and a minority owner of the San Francisco 49ers; Drew McKnight, co-chief executive officer of Fortress; and Ken Howery, co-founder of PayPal and Founders Fund.

BIG3 equity holders are eligible for an additional 2 million earnout shares vesting over five years if the combined company's stock closes at or above $15 for at least 20 of 30 consecutive trading days. MC Strategic Advisors LLC advised BIG3, with Ellenoff Grossman & Schole LLP as legal counsel. White & Case LLP advised Graf Global Corp.

The 3-on-3 format is gaining global recognition with its inclusion in the 2028 Olympic Games, providing a potential tailwind for the league's international expansion. Co-founder and Chairman Jeff Kwatinetz said the public listing "will provide capital and acquisition currency to take best advantage of our highly scalable platform."

This article is for informational purposes only and does not constitute investment advice.