It’s been a bad month for FTX so far, with the company’s former CEO, SBF, filing for Chapter 11 bankruptcy a week ago. The now-defunct cryptocurrency exchange and its disgraced founder paid about $375 million for long-term FTX contracts with teams and athletes. Athletes were also offered a stake in the company. Most of them are looking for an exit after a frenzy of contract signings with sports teams and celebrities over the past two years.
1) Miami Heat FTX Contracts
In April of 2021, the NBA team announced a 19-year deal with the FTX crypto exchange to purchase the naming rights to The Heat’s home arena for a whopping $135 million. However, on November 12nd, 2022, the Miami Heat signed a public disclaimer suspending the FTX deal. The news about Sam Bankman-Fried and FTX’s shady dealings was described as “extremely disappointing.” Accordingly, the arena where the Miami Heat play will soon be rechristened.
NBA’s Miami Heat to terminate relationship with FTX, will get new arena name https://t.co/X3BiLWHAhr
— Coinut Exchange – We’re hiring! (@coinut_exchange) November 18, 2022
2) Washington Wizards FTX Contracts
FTX also partnered with a number of Washington, DC-area sports teams through a sponsorship program. The Wizards, the Capitals, and the Mystics were all a part of them. The relocation allowed FTX to establish a foothold in the nation’s capital. The Washington Wizards have decided to immediately end their FTX deal, which had been going strong for less than a year.
The Wizards have decided to end their partnership with FTX, which was announced a little over a year ago. Fan giveaways sponsored by FTX that have already been produced are still active. Here are the specifics: https://t.co/VVZPZnwPZ8
— Ava Wallace (@avarwallace) November 18, 2022
3) Major League Baseball FTX Contracts
Even the MLB umpires are wearing FTX patches thanks to a five-year sponsorship deal between the company and the MLB. According to the MLB Association, “it’s probably a very good bet” that the logo patch will be eliminated for the upcoming season.
The Los Angeles Angels’ star player, Shohei Ohtani attracted the most financial support from FTX. Ohtani received shares of the defunct FTX company as part of the agreement. Due to the company’s bankruptcy, FTX’s equity stakes are now worth less than a penny on the dollar. Tom Brady, Stephen Curry, Naomi Osaka (tennis), and Shaquille O’Neal (basketball) are a few more examples. All of these athletes had just signed lucrative deals with FTX that included equity.
You can find a complete rundown of the A-listers who are being sued for promoting FTX right here. Football Quarterback Tom Brady Curry, Stephen O’Neal, Shaquille As Udonis Haslem Mr. David Ortiz Asserting That: Trevor Lawrence In this case, Shohei Ohtani Olympic gold medalist Naomi Osaka Famous Comedian Larry David Entrepreneur Kevin O’Leary
Tweet from unusual whales (@unusual whales): “It’s November 17th, 2022.
But Here’s the Other Side
- Not only is FTX not alone in spending huge sums on promotional sports deals, but it’s also been the target of widespread criticism.
- The NBA has honored Crypto.com with an arena bearing its name. The upcoming FIFA World Cup 2022 also counts Crypto.com as an official sponsor.
Why You Should Care
When the FTX (FTT) token, the company’s native cryptocurrency, collapsed, it wiped out $2 billion. The ripple effect of SBF’s careless actions is likely to grow. Many celebrities involved with FTX are trying to save face.
Find out more about the shocking FTX debacle:
The Securities Commission of the Bahamas has confirmed that it told FTX to send money to the treasury of the government.
TSM, a top e-sports organization, has broken a naming rights deal with FTX worth $210 million.
Disclaimer: This isn’t financial advice; it’s just for education. Crypted Crypto can’t guarantee its accuracy. Every investment and trade carries some risk, so always do your own research. Invest only what you can afford to lose.
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