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RedBall begins search franchise as IPO raises Gerry Cardinale and Billy Beane are set to begin their search for a professional sports franchise after their new special purpose acquisition company (SPAC) raises US$575 million (almost $440 million) in its initial public offering (IPO). Redbird Capital Partners, the US investment firm led by Gerry Cardinale, joined forces with Billy Beane of Oakland A’s to form RedBall Acquisition Corp., in what will be the first sportsfocused SPAC.
An initial public offering (IPO) was filed by the securities and exchange commission (SEC) at the end of July, with RedBall hoping to generate US$500 million to buy a professional sports franchise. However, due to demand, a further US$75 million was raised as underwriters exercised an option to sell an additional 7.5 million shares. The company has the freedom to secure a company in no particular sector. According to the filing, “it intends to focus on businesses in the sports, media and data analytics sectors, with a focus on professional sports franchises, which complement the management team’s expertise and will benefit from its strategic and hands-on operational leadership.” Trading of stocks began on August 13 operating under RBAC.U’ on the New York Stock Exchange, while investment ISSUE TWELVE ★ SEPTEMBER 2020
and financial services firm Goldman Sachs acted as the sole book-running manager for the offering. In the space of four days, the IPO raised a better-thanexpected IPO of US$575 million, with 57.5 million units sold at US$10 per share. Israel ‘Izzy’ Englander, founder, chairman and chief executive of New York-based hedge fund Millennium Management LLC and one of the world’s richest billionaires, has taken a 7.8 per cent stake in RedBall Acquisition Corp. In a move showing the continued interests in the sports and entertainment industry among the financial and investment communities, Englander’s Millennium Management was shown in a new filing with the US securities & Exchange Commission to own 4.5 million shares, worth more than US$45 million.
Beane, who became recognised because of his data-driven approach while being general manager of Major League Baseball (MLB) team Oakland Athletics, will be co-chairman alongside Cardinale. Joining them on the management side of things will be Alec Scheiner, chief executive, and Luke Bornn, executive vice president. Furthermore, former English Premier League boss Richard Scudamore has been appointed to the board as the company looks to invest in European football, with a Premier League club understood to be top of its wish list. The New York Post has reported that RedBall have identified purchasing a minority stake in English Premier League Champions Liverpool FC as a ‘primary target’. Beane, reportedly a Liverpool fan,
