The Big3 is merging with Graf Global Corp. (TONT) in a SPAC deal that values Ice Cube’s 3-on-3 professional basketball league at $290 million (~$322 million enterprise value). The combination, expected to close this fall, would make it one of the few publicly traded professional sports leagues in the U.S. (see: WWE/UFC/PBR and F1/MotoGP).

“We think this is really going to work, that the stock will do really well,” Jeff Kwatinetz (co-founder and president, Big3) said. 

Big3 has built a viable product over nine seasons. The league has eight teams (four were sold in 2024) and stages ~10 events each year. Its 2026 season debut averaged 560,000 viewers on CBS.

Big3’s current deal with the Paramount Skydance owned network is structured so that the league retains all its advertising inventory, which is fully sold out for the remainder of the year. The eight returning sponsors: Capital One, Lowe’s, Merck, Monster Energy, Procter & Gamble, Simply Spiked by Coors, Total Wireless and Walmart each pay ~$750,000 annually.

The league also has games broadcast across Fubo, YouTube and BET.

What Big3 doesn’t have is a long-term media rights agreement in place, the kind of multi-year commitment that would significantly increase the league’s revenue baseline and valuation. 

The pitch to investors is that the SPAC proceeds will enable the league to sell another 8 to 12 teams, increase event inventory to ~50, push sponsor fees closer toward $5 million, and finally secure the broadcast deal it is after.

“The league is at a real inflection point,” Kwatinetz said. “The opportunity for growth with a long-term partner will supercharge it.”

Big3 isn’t the only rights owner looking to tap into the public markets. The Enhanced Games completed its own SPAC merger earlier this year at a $1.2 billion valuation (ticker: ENHA). 

Several other sports-adjacent entities have completed IPOs this summer too (see: AESPU and SHOTU). 

SPACs have rebounded as a capital-raising mechanism, partly because Wall Street loves dealmaking. But also because the market has become more discerning, which has improved the quality of SPAC targets.

Combine that with regulatory reforms (i.e. they are no longer a safe harbor from prosecution for inflated five-year revenue projections) and enough investor confidence has been restored for deals to once again get done.

But the SPAC route isn’t guaranteed to work.

Graf Global shareholders can vote against the transaction and redeem their shares for the ~$10 (i.e. the amount originally paid in the IPO). Doing so would reduce the amount Big3 is able to secure upfront and could scuttle the deal altogether. 

Big3 is also facing a lawsuit from NFT holders who allege ownership entitles them a share of future franchise-sale proceeds. League attorneys dismiss the claim as a ‘nuisance lawsuit,’ according to Front Office Sports.

Post-merger performance is a separate challenge.

SPACs have had a tough time finding their footing in the public markets. Enhanced, for example, is now trading around $3, down from its $10 deal price.

And few sports properties have historically thrived as public entities. That’s mainly because these organizations do not let shareholders drive business decision-making on a quarter-to-quarter basis (see: MSGS and the Dolans, F1 with Liberty) and sports teams don’t easily fall into the growth or value/income stock categories that fund managers look for.

So, the question is why go public at all? 

The answer is access to capital.

Kwatinetz said 11 NBA team owners have explored a league investment over the years only to be told they couldn’t buy in because the NBA considered Big3 a competing men’s basketball property. The NBA’s stance on the summer barnstorming tour has also deterred sports-focused PE funds from getting involved.

“It’s a hard thing to tell your [limited partners] that you’re not eligible for an NBA ownership [stake] because you own a piece of the Big3. It’s really taken us out of the market for all those sports funds which have greatly proliferated,” he explained.

Other emerging leagues without NBA entanglements have been able to find institutional capital in a market flush with sports investment dollars (see: Premier Lacrosse League raised ~$100 million, PWHL attracted ~$50 million).

“There’s [certainly] money out there to invest in sports,” JohnWallStreet Advisory Advisor and Crakes Media founder Patrick Crakes said. “Sports is working a lot better than entertainment content right now. [Going public] is going to help with [Big3’s] narrative.”

However, the desire for investor liquidity could be an issue. Big3’s original backers have had their capital tied up for nine years without a meaningful opportunity to sell. The SPAC transaction would give them a chance to cash out, at least partially, and turn years of paper value into actual proceeds.

To date, little information has been released on the league’s early investors—only Kanye West’s 2021 investment has been reported. Graf and Big3 will be forced to disclose major shareholders and detailed financials before the vote to merge can commence. 

Once public, Kwatinetz and co-founder Ice Cube believe the market will reward the league’s ability to consistently draw audiences on television and in person. The former pointed to Big3’s 2025 ratings on CBS, noting that they compare favorably to both the NHL and MLS on a per-broadcast basis. 

While his point is directionally accurate (the investor deck states the NHL averaged ~445,000 viewers for its 2025 regular-season games), it must be noted Big3 lacks the premium inventory —like the Stanley Cup Playoffs— that commands the highest ad dollars.

Still, there remains plenty of room for league growth. There’s a relative paucity of summer sports programming and unlike many other startup leagues, it has some name recognition to build on.

Plus, basketball is one of just a few sports with worldwide participation and fandom. 

“In a sector where almost all new leagues fail, our league has succeeded… because we have a sport people love,” Kwatinetz said. “Our valuation is ridiculously competitive with a much higher total addressable market.”

If its plan comes together, Big3 will have the capital needed to scale its game into a significantly larger global business.

In the latest episode, The Sports Advisors talk local sports media production and distribution.

We explore how the NBA and NHL’s competing models are expected to affect team finances and reshape the buying and selling of local inventory, the role of emerging technology, and whether centralization is ultimately the inevitable end state across the NHL, NBA, and MLB.

As always, you can connect with a member of the JohnWallStreet Advisory team by sending a note to [email protected]. In fact, we encourage it!

📺 Watch the full video on JohnWallStreet’s YouTube page. 
🎧 Listen on Apple Podcasts or Spotify.