- RedBall has an interesting potential "heads you win, tails you don't lose much" setup for the patient investor.
- Management is well-regarded and well-connected within the sports industry.
- The SPAC is differentiated given its focus on sports, credible management, and slightly larger size; it may end up with a trophy sports asset.
- That said, the SPAC market feels somewhat frothy, implicit costs are high, and there is material uncertainty.
- It appears RedBall has the properties of an attractively priced call option.
For further details see:
RedBall Acquisition: An Interesting Sports SPAC Opportunity