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Sports Entertainment Acquisition SPAC Launches $400 Million IPO

Units of Sports Entertainment Acquisition Corp., a SPAC focused on sports and entertainment, on Friday began trading on the NYSE.

Sports Entertainment Acquisition Corp., a special-purpose-acquisition company focused on sports and entertainment, began trading on the NYSE on Friday.

It doled out 40 million units at $10 each for its IPO. The units recently traded at $9.92.

Each unit consists of one share of the company's Class A common stock and half a  redeemable warrant. Each whole warrant entitles the holder to buy one share of Class A common for $11.50.

Once the securities comprising the units begin separate trading, the Class A common stock and warrants would trade on the NYSE as SEAH and SEAH WS respectively.

Sports Entertainment’s top managers have long resumes in the field. 

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Eric Grubman, chairman and chief financial officer, was previously executive vice president of the National Football League, co-president of Constellation Energy Group, a partner at Goldman Sachs, and an officer in the Navy.

Chief Executive John Collins was previously chief operating officer of the NHL, CEO of the Cleveland Browns and a senior executive at the NFL.

“We believe that many companies operating in the sports and entertainment sectors, and the technology and service areas that enable them, have characteristics that make them attractive targets,” the company said in its S-1 report.

“These businesses often emerge within the ecosystems of the owners of content and other intellectual property, and require different applications of capital and specific management experiences to grow.”

SPAC IPOs and mergers are all the rage now. In August, RedBall Acquisition Corp. a SPAC co-chaired by Moneyball maven Billy Beane, executed a $575 million IPO and seeks to buy sports franchises and leagues.

SPACs, or blank-check companies, are formed for the specific purpose of finding and merging with operating businesses. They are a faster way to go public than the traditional effort with investment banks and underwritings.