WILMETTE, Ill. — The growth of the sports finance industry continues with the formation of Andretti Acquisition Corp.
Based in Indianapolis, the company filed a registration statement with the Securities and Exchange Commission. Andretti Acquisition Corp. is categorized as a black check company, commonly known as a “Special Purpose Acquisition Company” or “SPAC.”
Basically, it is a shell corporation that anticipates a listing on the New York Stock Exchange. They plan to use the ticker symbol — “WNNR.”
Its purpose is to effect a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities.
Investors are pouring money into SPACs at record levels betting that management has the ability to succeed. There are unique combinations of experienced finance and hedge fund managers combining with influential athletes and entertainers to partner on sports-related SPACs.
Raising money has not been a difficult for most SPACs, investors are looking to park money and the allure of sports and entertainment is appealing.
The initial public offering “IPO” price will be $10 with the goal to raise $250 million by selling 25,000,000 shares.
Andretti Acquisition Corp. intends to use the proceeds to invest in and operate across the premium automotive and industrial sectors. They plan to elevate recognition with the well-established Andretti brand name.
There are specific rules that SPACs must follow. They must spend the offering proceeds within 24 months or return the funds to investors.
The company is being led by Michael Andretti and Bill Sandbrook as co-chief executive officers.
Michael Andretti was a champion Indy car driver and now owns Andretti Autosport. He also owns various car dealerships, convenience marts, car washes, powersport stores and an apparel line.
Andretti Autosport has an equity stake in EVO, a platform that gives fans the ability to invest in individual professional athletes. Michael Andretti partnered with EVO to identify the best up-and-coming race car drivers to bring under the EVO umbrella and help revolutionize sports development for individual athletes.
Bill Sandbrook is a successful corporate executive, recently serving as chairman of U.S. Concrete. A West Point grad and Wharton MBA, he is from the Lehigh Valley area in Pennsylvania.
In 2018, U.S. Concrete, was the the primary sponsor of Marco Andretti in the NTT IndyCar Series.
Zak Brown, CEO of McLaren Racing has agreed to serve on the company’s board of directors. At McLaren, he has overall responsibility for the business, including strategic direction, operational performance, marketing and commercial development. Prior to joining McLaren, he founded Just Marketing International, a leading agency located in Indianapolis. Brown is also a partner in the Australian SuperCar team of Walkinshaw Andretti United.
Racing legend Mario Andretti, Michael Andretti’s father, will serve as a special advisor for the organization. His role will be to assist in sourcing and negotiating with potential business targets, provide business insights and work to create additional value.
The underwriter is RBC Capital Markets and legal counsel are Paul, Weiss, Rifkind, Wharton & Garrison LLP and Skadden, Arps, Slate, Meagher & Flom LLP.
Will the Andretti Acquisition Corp., as a publicly traded entity make acquisitions in the motorsports sector? Only time will tell because taking the green flag is only the start.