​Ice Cube’s BIG3 league, the three-on-three basketball circuit launched in 2017, is preparing to go public as it faces a pending lawsuit. AFROTECH™ previously reported that BIG3 operates several city-based teams, including Miami 305, Houston Rig Hands, and LA Riot, with each franchise reportedly having been sold for about $10 million. In June, BIG3 announced its intention to become a publicly traded company, offering fans an ownership stake in the league. A press release put the league’s valuation at roughly $290 million and stated that BIG3 is set to merge with Graf Global Corp., a publicly traded special-purpose acquisition company (SPAC), under a definitive agreement.
“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.”
The public-merger announcement arrives amid the league facing a proposed class-action lawsuit. In 2022, BIG3 experimented with blockchain by letting fans own a stake in teams through non-fungible tokens (NFTs), as reported by AFROTECH™. The NFT program offered two purchase tiers: 25 Fire NFTs priced at $25,000 each, and 975 Gold NFTs priced at $5,000 each. Regardless of the tier, NFT holders were promised team voting rights, VIP game tickets, and access to limited-edition team, league, and championship merchandise and memorabilia.
Over time, BIG3’s NFT guarantees faded, and four franchises were sold to external investors for nearly $40 million, according to Front Office Sports. The original Fire NFT holders did not receive proceeds from these sales. The lawsuit contends that the league attempted to dodge accountability by stating the sold teams were rebranded and that the newer versions were “expansion” teams, while designating the originals as on “hiatus,” as detailed by 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 suit accuses BIG3 of fraudulent concealment, breach of contract, and misrepresentation of buyers’ rights, among other claims. A BIG3 spokesperson told Front Office Sports that the plaintiffs—led by Sheward and others—represent holders of an NFT asset class whose value collapsed with the broader market. “The plaintiffs are filing a public nuisance suit despite contractual obligations to resolve such disputes through confidential arbitration. This is a classic nuisance suit for an asset class that has lost all value, brought to extort the BIG3,” the representative asserted.
A hearing for the case is scheduled for August 24. The ongoing legal matter coexists with the league’s public-market ambitions, highlighting the varied pressures facing a sports organization implementing innovative technologies and ambitious growth plans.