Ice Cube’s Big3 basketball league is preparing to go public through a special purpose acquisition company (SPAC) merger that values the league at $290 million. However, this move comes amid a lawsuit filed last summer by fans who purchased Big3 team-specific NFTs. The class action suit, brought by Lou and Sally Sheward in California state court, accuses the league of misrepresenting the rights attached to these NFTs, particularly claiming that buyers were promised ownership stakes and a share in future franchise sales that never materialized.

In April 2022, Big3 launched a program selling two tiers of NFTs—gold-level at $5,000 and fire-level at $25,000—offering benefits such as voting rights, VIP game tickets, and for fire-level buyers, a share of proceeds from any future team sales. Despite initially treating these NFTs as ownership interests, the league allegedly stripped away these benefits over time. The lawsuit asserts that Big3 sold four franchises for about $40 million to external investors without compensating fire NFT holders and rebranded the original teams as expansion franchises while putting the original ones on hiatus.

Big3 spokespersons dismissed the lawsuit as sour grapes, pointing to the collapse in NFT market values and arguing that disputes must be resolved via confidential arbitration rather than public suits. Meanwhile, the plaintiffs’ attorney, Joseph Sakai, emphasized that the NFT buyers are fans invested in the league’s success who feel betrayed by unfulfilled promises. A hearing on whether the case will proceed as a class arbitration is scheduled for August 24, with Sakai expecting hundreds of NFT owners to be involved and to potentially amend the suit to address the impact of the upcoming public listing.

This controversy highlights broader challenges in the sports world surrounding NFT ventures. Similar cases have surfaced in recent years, including high-profile settlements involving NBA Top Shot’s parent company, Shaquille O’Neal’s NFT projects, and others who faced legal scrutiny over misrepresented digital assets. Despite a market downturn for NFTs since 2022, Big3 has remained optimistic about its program, but its transition to a publicly traded company now amplifies scrutiny over past commitments to NFT holders.