The pullback on SPACs has been swift — and now one of the biggest deals in history has dissolved. 

Sportradar and a special-purpose acquisition company led by Los Angeles Dodgers co-owner Todd Boehly have canceled their $10 billion merger. The sports data giant is now exploring a traditional IPO. 

The deal done in March was to come with one of the largest valuations for a SPAC merger, a defining moment for a sports data business dominated by Sportradar and Genius Sports. 

Sportradar’s numerous partnerships include the NBA, MLB, NHL, and NASCAR.

SPACs, also known as “blank-check companies,” raise money on the public market with the purpose of acquiring a private company and taking it public. 

• They became very popular in 2020, raising $83.3 billion across 248 IPOs. 
• SPAC investments surpassed their 2020 totals in the first quarter of 2021. To date, investors have bought into 331 SPACs this year at a sum of $104.4 billion. 
• However, investors and companies hit the brakes on the investment model when the SEC issued guidance that some SPAC investments should likely be classified as an asset or liability, not equity. Only 16 SPAC mergers have been completed so far in Q2, according to SpacTrack. 

Genius Sports went public via SPAC merger last November at an estimated valuation of $1.5 billion. 

Another SPAC launched by Boehly’s Eldridge Investments took ticket seller Vivid Seats public in April at a $1.95 billion valuation.

CVC Capital Partners, a private equity firm, is in negotiations regarding a $600 million deal that would merge the ATP and WTA, the top men’s and women’s professional tennis tours. 

The merger, reported by Sky News, would place the ATP and WTA’s commercial activities under one roof. 

The single entity would be called One Tennis, with CVC holding a minority interest in the combined company. 

CVC established legitimacy in sports as an owner of Formula 1. The private equity firm acquired the motorsports business in 2006 for $2 billion. It had a value of $8 billion after it was sold to Liberty Media in 2017.

The desire to merge the ATP and WTA adds to recent transactions CVC has made to expand its reach and diversify its sports investments. 

• Invested $300 million in the International Volleyball Federation in February to launch Volleyball World. The new entity will operate tournaments such as qualifiers for the Olympic Games. 
• Agreed to a long-term strategic partnership in March with Six Nations Rugby. The partnership will help grow the game and enhance the organization’s prestigious tournaments. 
• Started negotiations to acquire a stake in the Currie Cup, South Africa’s premier domestic rugby union competition. 

Tennis has suffered amid the pandemic, and CVC believes that combining the two tours can expedite the sport’s recovery and help revenue disparity. 

Before the pandemic, the ATP generated almost $150 million in revenue annually, while the WTA made only about half that. 

The Chernin Group is living large after its third round of funding. 

The investment firm is raising $1 billion in its latest round, according to Axios. The report also included news of three new partners.

In February, TCG led a $40 million growth capital round in Goldin Auctions — a collectible and trading card marketplace — with a group including Mark Cuban, Kevin Durant, and Dwyane Wade.

TCG has a track record of investing in sports content, commerce, and consumer tech. 

• Bought a 51% stake in Barstool Sports in 2016. Penn National announced it would buy a 36% stake in Barstool last year for $163 million.
• Partnered with Barstool Sports’ CEO Erika Nardini in March to form a SPAC with a $250 million funding goal for “internet businesses” including companies in sports and gaming and wellness.
• Formed The Action Network in October 2017. Last month, Better Collective announced it would purchase the network for $240 million.
• Was part of the $4.6 million venture capital funding round in Stadium Goods with Forerunner Ventures and Mark Cuban.

TCG’s new partners include Maureen Sullivan, former president and COO of Heyday, who’ll concentrate on female-focused businesses; Luke Beatty, former CEO of Brandfolder, for outdoor space; and Jarrod Dicker, a former Washington Post VP, who will work on blockchain and crypto.

“We are totally focused on growth stage right now,” said TCG’s Mike Kerns. “You won’t see us doing more early-stage (investments) from our growth funds.”