The depressed SPAC market has claimed another victim. Victory Acquisition, a star-studded blank check looking to raise $250 million in an IPO, filed with the Securities & Exchange Commission Friday night to cancel its plans.
Led by Dallas Stars CEO Jim Lites and Billy Quinn, who is a member of the Stars’ ownership advisory group, Victory wanted to raise $250 million “to run a business in the media, sports and entertainment industries,” according to the report Victory his preliminary prospectus.
Victory’s Board and Board of Directors roster included a number of figures who seemed poised to help the company succeed, including Sammy Hagar, former Van Halen singer and taco and tequila entrepreneur, and Roger Staubach, who Naval Academy and Dallas Cowboys quarterback legend.
The win should also include Angela Mathes, a former top executive at networks including TLC, Fox and ABC, whose work has included developing The View and selecting Kelly Ripa to co-host a morning TV show with Regis Philbin, said her biography in the preliminary offer document. Bryant Patton, the chairman of the Cotton Bowl college football team, would also serve on the board, along with several other banking industry veterans.
Victory first filed for an IPO in March 2021, at the height of enthusiasm for dedicated acquisition vehicles. Just weeks later, the SEC slammed the SPACs with double warnings about celebrity-backed vehicles and asked the SPACs to review how they account for warrants offered in IPOs. At the time of Victory’s inception, it was believed that high-profile celebrities such as Sammy Hagar, perhaps best known for the rock hit I Can’t Drive 55, would help SPACs find exciting companies to list while promoting SPACs help stand out from the crowd in the marketplace. SPACs, also known as blank check companies, raise money in an IPO with the intention of later finding a company to merge with.
Sport has been a particularly popular sector for SPACs to enter the market, with more than 160 SPACs declaring a sport focus or including athletes and sport managers. The market for SPACs has fallen sharply in recent months as many SPACs are unable to find enough investors to conduct IPOs or complete proposed mergers. In addition to Victory, nearly five dozen SPACs have canceled IPO plans this year, including vehicles owned by billionaire David Bonderman, Chelsea football club bidder Todd Boehly and former quarterback and ESPN announcer Eli Manning.
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