Ice Cube’s BIG3 league is planning to go public amid a lawsuit
As AFROTECH™ previously reported, the 3-on-3 league, launched in 2017, operates teams in cities including Miami (Miami 305), Houston (Houston Rig Hands), and Los Angeles (LA Riot), which reportedly sold for $10 million each
In June, BIG3 announced plans to go public, giving fans a stake in the league. BIG3’s valuation reportedly sits at $290 million, according to a press release. It is entering into a definitive agreement to merge with publicly traded special-purpose acquisition company Graf Global Corp. as a result
“We are excited for BIG3 to be the first publicly traded professional sports league in the US,” Ice Cube said in the press release. “Leading a new generation of emerging sports, BIG3 connects basketball to culture, fans and our team communities. 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, support us, and participate in our success.”
Lawsuit
The announcement comes as BIG3 faces a proposed class-action lawsuit. In 2022, the league embraced blockchain technology by allowing fans to have a stake in its teams through non-fungible tokens (NFTs), according to a separate story from AFROTECH™. Buyers had the option of two tiers: 25 Fire, valued at $25,000 each, or 975 Gold, valued at $5,000 each. Regardless of the tier, buyers would have team voting rights, VIP tickets to games, and limited-edition team, league, and championship merchandise and memorabilia.
BIG3’s commitments to NFT buyers faded with time, and four franchises were sold to outside investors for nearly $40 million The Fire NFT holders did not receive payouts from the sale
The lawsuit asserts that BIG3 sought to avoid accountability for this by claiming the sold teams were rebranded and referring to the new iterations as “expansion” teams while placing the original teams on “hiatus,” per Front Office Sports. The expanded teams are LA Riot (formerly the Enemies), the Detroit Amps (formerly Ghost Ballers), the Houston Rig Hands (formerly Bivouac), and Miami 305 (formerly 3’s Company)
The lawsuit alleges that the league engaged in fraudulent concealment, breach of contract, and misrepresentation of buyers’ rights, along with other claims
A BIG3 representative told Front Office Sports that “Sheward and the other plaintiffs represent holders of an asset class—namely NFTs—which lost all value due to the overall market collapse.”
“The plaintiffs are filing a public nuisance suit despite contractual obligations to resolve all such disputes through confidential arbitration. This is a classic nuisance suit for an asset class that has lost all value, brought in an effort to extort the BIG3,” the rep continued
A hearing is scheduled for Aug. 24, per the outlet
