U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   Form 10-QSB

(Mark One)

[X]  QUARTERLY REPORT  UNDER SECTION  13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
     OF 1934 FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2001

[ ]  TRANSITION  REPORT  UNDER  SECTION 13 OR 15(D) OF THE  EXCHANGE ACT FOR THE
     TRANSITION PERIOD FROM ________ TO _________

Commission File Number: 0-25247


                               SPORTING MAGIC INC.
        (Exact name of small business issuer as specified in its charter)


         Delaware                                            95-4675095
(State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                            Identification No.)


                       17337 Ventura Boulevard, Suite 224
                            Encino, California 91316
                    Issuer's Telephone Number: (818) 784-0040
            (Address and phone number of principal executive offices)

     Check whether the registrant filed all documents and reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes [X]     No [ ]

     The Registrant has 764,907 shares of common stock, par value $.001 per
share, issued and outstanding as of November 30, 2001.

     Transitional Small Business Disclosure Format (check one) Yes [ ] No [X]


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<PAGE>


                            INDEX TO QUARTERLY REPORT
                                 ON FORM 10-QSB

PART I   FINANCIAL INFORMATION                                              PAGE

Item 1.  Financial Statements .................................................3
         Balance Sheets (unaudited) ...........................................4
         Statements of Operations and Accumulated Deficit (unaudited) .........5
         Statements of Cash Flows (unaudited) .................................6
         Notes to Financial Statements ........................................7

Item 2.  Management's Discussion and Analysis or Plan of Operation ............8

PART II  OTHER INFORMATION

Item 1.  Legal Proceedings ....................................................9
Item 2.  Changes in Securities and Use of Proceeds ............................9
Item 3.  Defaults upon Senior Securities ......................................9
Item 4.  Submission of Matters to a Vote of Security Holders ..................9
Item 6.  Exhibits and Reports on Form 8-K ....................................10

Signatures ...................................................................10

                           FORWARD-LOOKING STATEMENTS

     This report contains forward-looking statements. The forward-looking
statements include all statements that are not statements of historical fact.
Our actual results could differ materially from the anticipated results
described in the forward-looking statements. Factors that could affect our
results include, but are not limited to, those discussed in Item 2,
"Management's Discussion and Analysis or Plan of Operation," and our current
views with respect to future events that involve risks and uncertainties
including uncertainties related to successful negotiations with third parties,
capital availability, operational and other risks, selection of profitable
sites, and uncertainties and factors described from time to time in our publicly
available SEC reports. In light of these risks and uncertainties, the
forward-looking events described in this report might not occur.

     For this purpose, any statements contained in this report that are not
statements of historical fact may be deemed to be forward-looking statements.
Without limiting the generality of the foregoing, words such as "may," "expect,"
"believe," "anticipate," "intend," "could," "estimate," or "continue," or the
negative or other variations thereof or comparable terminology, are intended to
identify forward-looking statements. Factors that may affect our results
include, but are not limited to, whether we will be able to identify, in a
timely manner, appropriate acquisition or merger candidates, negotiate
satisfactory terms for an acquisition or merger, satisfy any regulatory,
business, financing or other requirements and address other types of
contingencies that may arise in connection with such an acquisition or merger.


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<PAGE>


PART I   FINANCIAL INFORMATION


                (Financial Statements Commence on Following Page)


                   (Balance of Page Intentionally Left Blank)







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<PAGE>


SPORTING MAGIC, INC.


BALANCE SHEETS

                                                       November 30
                                                           2001       August 31,
                                                       (Unaudited)       2001
                                                       ---------      ---------

ASSETS - CASH ....................................     $     233      $     344
                                                       =========      =========

LIABILITIES AND SHAREHOLDERS' DEFICIT

LIABILITIES:
Accrued expenses .................................         7,444          1,635
Due to related parties ...........................         3,655          3,655
Note payable to shareholder ......................        24,550         18,450
Accrued interest due to shareholder ..............         3,076          1,476
                                                       ---------      ---------
Total liabilities ................................        38,725         25,216
                                                       ---------      ---------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' DEFICIT:
Common stock, par value - $.001,
    25,000,000 shares authorized, 763,952
    shares issued and outstanding ................           764            764
Additional paid-in capital .......................       952,929        952,929
Accumulated deficit ..............................      (992,185)      (978,565)
                                                       ---------      ---------
Total shareholders' deficit ......................       (38,492)       (24,872)
                                                       ---------      ---------

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT ......     $     233      $     344
                                                       =========      =========

See accompanying notes to financial statements.


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SPORTING MAGIC, INC.


STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT
FOR THE THREE MONTHS ENDED
NOVEMBER 30, 2001 AND 2000 (UNAUDITED)

                                                          Three Months Ended
                                                        2001              2000
                                                     --------          --------

EXPENSES:
General and administrative .................         $  3,785          $  2,319
Professional fees ..........................            7,435             7,635
Interest expense ...........................            1,600
                                                     --------          --------
Total expenses .............................           12,820             9,954
                                                     --------          --------

LOSS BEFORE INCOME TAXES ...................          (12,820)           (9,954)

INCOME TAXES ...............................              800
                                                     --------          --------

NET LOSS ...................................         $(13,620)         $ (9,954)
                                                     ========          ========

BASIC LOSS PER SHARE .......................         $  (0.02)         $  (0.02)
                                                     ========          ========


See accompanying notes to financial statements.


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<PAGE>


SPORTING MAGIC, INC.


STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED
NOVEMBER 30, 2001 AND 2000 (UNAUDITED)

                                                            2001          2000
                                                         --------      --------

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ...........................................     $(13,620)     $ (9,954)
Adjustments to reconcile net loss
    to net cash used by operating activities:
    Changes in operating assets and
      liabilities:
      Accounts payable and accrued expenses ........        7,409         8,741
                                                         --------      --------
Net cash used by operating activities ..............       (6,211)       (1,213)
                                                         --------      --------
CASH FLOWS FROM FINANCING ACTIVITIES - Net
    borrowings from shareholder ....................        6,100         2,500
                                                         --------      --------
NET INCREASE (DECREASE) IN CASH ....................         (111)        1,287

CASH, BEGINNING OF PERIOD ..........................          344           -0-
                                                         --------      --------
CASH, END OF PERIOD ................................     $    233      $  1,287
                                                         ========      ========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
    INFORMATION - Cash paid for income taxes .......     $    800      $    -0-

See accompanying notes to financial statements.



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SPORTING MAGIC, INC.


NOTES TO FINANCIAL STATEMENTS

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Basis of Presentation - The accompanying unaudited financial statements
     have been prepared in accordance with generally accepted accounting
     principles for interim financial information and with the instructions to
     Form 10-QSB and Item 310(b) of Regulation S-B. Accordingly, they do not
     include all of the information and footnotes required by generally accepted
     accounting principles for complete financial statements. In the opinion of
     management all adjustments (consisting of normal recurring accruals)
     considered necessary for a fair presentation have been included. Operating
     results for the three months ended November 30, 2001, are not necessarily
     indicative of the results that may be expected for the year ended August
     31, 2002. For further information, refer to the financial statements and
     footnotes thereto included in the Company's report on Form 10K-SB for the
     year ended August 31, 2001.

     The balance sheet at August 31, 2001, has been derived from the audited
     financial statements at that date but does not include all of the
     information and footnotes required by generally accepted accounting
     principles for complete financial statements.

     General Information - The Company is a "shell" company with minimal
     operations. Management's plan is to identify and complete an acquisition,
     merger or other transaction that will enhance shareholder value.

     Going Concern - The Company experienced significant operating losses since
     inception and has a negative net worth. The financial statements have been
     prepared assuming the Company will continue to operate as a going concern
     which contemplates the realization of assets and the settlement of
     liabilities in the normal course of business. No adjustment has been made
     to the recorded amount of assets or the recorded amount or classification
     of liabilities which would be required if the Company were unable to
     continue its operations.

     Loss Per Share - The Company adopted the provisions of Statement of
     Financial Accounting Standards ("SFAS") No. 128, "Earnings Per Share" that
     established standards for the computation, presentation and disclosure of
     earnings per share ("EPS"), replacing the presentation of Primary EPS with
     a presentation of Basic EPS. It also requires dual presentation of Basic
     EPS and Diluted EPS on the face of the income statement for entities with
     complex capital structures. The Company did not present Diluted EPS since
     it has a simple capital structure.


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<PAGE>


2.   SUBSEQUENT EVENT

     On December 26, 2001, the Company announced that it had entered into an
     agreement to issue 15.7 million shares of its common stock in exchange for
     100% of the outstanding shares of Next Inc., a privately-held company. The
     acquisition is planned to close in January 2002.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

PLAN OF OPERATION

     As a "shell" company, we currently have no revenues from operations. Our
business plan is to identify and complete an acquisition, merger or other
transaction that will enhance shareholder value. Our President and Chairman is
investigating potential business opportunities, as authorized by the Board of
Directors. The Board has placed no limitations on the type of business or
industry to consider. No assurances can be given as to our ability to identify
and complete a transaction by any given date or as to the nature of the business
or profitability of the company if a transaction is completed. A proposed
transaction could be subject to significant regulatory, business, financing and
other contingencies and might require shareholder and other approvals.

RESULTS OF OPERATIONS

     The following is a discussion of the results of operations for the three
months ended November 30, 2001.

THREE MONTHS ENDED NOVEMBER 30, 2001

     During the quarter ended November 30, 2001, our operations were dormant. We
did not engage in any income or revenue producing activity. During the quarter,
we continued to search for possible business acquisitions and other business
opportunities. We plan to continue with that search.

     However, during the quarter ended November 30, 2001, we incurred general
and administrative expenses totaling $3,785 representing primarily stock
transfer agent fees, compared to $2,319, for the quarter ended November 30,
2000. Consulting and professional fees totaled $7,435, compared to $7,635, for
the quarter ended November 30, 2000. These expenses were mainly comprised of
accounting fees.

     Our current plan of operation is to identify and complete an acquisition,
merger or other transaction that will enhance shareholder value.

     Without any operating business or material assets, we anticipate that the
Company will continue to operate as a shell corporation until such time as
management identifies and completes


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<PAGE>


an acquisition of, or merger with, an operating company. No assurances can be
given as to our ability to identify and complete a transaction by any given date
or as to the nature of the business or profitability of the company if a
transaction is completed. A proposed transaction could be subject to significant
regulatory, business, financing and other contingencies and might require
shareholder and other approvals.

     We anticipate that the Company will incur expenses of approximately $2,000
per month while operating as a shell corporation.

LIQUIDITY

     At November 30, 2001, the Company had no working capital. It is currently
solely dependent on its president and principal shareholder, Buddy Young, to
finance its limited operations. In accordance with a promissory note between the
Company and Mr. Young, he has agreed to loan us up to $2,000 per month through
August 31, 2002. Under the terms of the note, funds advanced to us by Mr. Young
will accrue interest at the rate of eight percent (8%) per annum. The note is
due and payable on September 30, 2002. Additional working capital may be sought
through additional debt or equity private placements, additional notes payable
to banks or related parties (officers, directors or stockholders), or from other
available funding sources at market rates of interest, or a combination of
these. The ability to raise necessary financing will depend on many factors,
including the nature and prospects of any business to be acquired and the
economic and market conditions prevailing at the time financing is sought. No
assurances can be given that any necessary financing can be obtained on terms
favorable to the Company, or at all.

PART II  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

     Sporting Magic Inc. is not a party to any material legal proceedings.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

     None

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

     None

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     No matters were submitted to the security holders during the quarter.


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ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K(A)

EXHIBITS

         None

                                   SIGNATURES

     In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, there unto
duly authorized.

                                  SPORTING MAGIC INC.
                                  (Registrant)

Date: January 4, 2002             /S/ BUDDY YOUNG
                                  ----------------------------------------------
                                  Buddy Young, President and Chief Executive
                                  Officer (Principal Executive Officer)

Date: January 4, 2002             /S/ BUDDY YOUNG
                                  ----------------------------------------------
                                  Buddy Young, Chief Financial Officer
                                  (Principal Financial and Accounting Officer)


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