You have to rotate the quad to face the camera, since it has to cover the area where the ball may render (imagine the extreme case: if the quad is perpendicular to the camera, it looks like a line to the camera, you could only render the ball within that line, it wouldn't protrude to the left or right).
Or you only run the center point through the camera transform, and then render the quad in screen space. Should be cheaper in terms of compute.
As far as I know there shouldn't be any distortion issues. A sphere will always look like a circle from any perspective. Well that is unless it's really really big or your are really really tiny and you give the size difference you are relatively close to its surface. At that perspective it just look like a flat plane.