FTX Contagion In Sports: Teams And Athletes Rush To Terminate FTX Deals

FTX Contagion In Sports: Teams & Athletes Rush To Terminate FTX Deals

The FTX contamination continues to spread this month, as FTX’s former CEO SBF signed the papers for Chapter 11 bankruptcy just a week ago. The collapsed crypto exchange and its disgraced founder had invested around $375 million in long-term sports partnerships. Athletes were also given equity in the embattled enterprise. After a two-year spree of signing deals with sports world franchises and celebrities, most of them are now anxiously looking for the door.

1) Miami Heat

The NBA franchise announced a 19-year deal with the FTX crypto exchange to acquire the name rights to The Heat’s home venue back in April 2021 for a whopping $135 million. However, Miami Heat inked a public disclaimer on November 12th, 2022 to suspend the FTX deal. They said the reports about Sam Bankman-Fried and FTX’s shady ways were “extremely disappointing.” Hence, Miami Heat’s home ground is bound for a name change in the near future.

2) Washington Wizards

In addition, FTX made sponsorship deals with several Washington-based sports teams. They included the Wizards, Capitals, and Mystics. The move let FTX set foot in the political center of the United States. Now the Washington Wizards have halted their FTX deal with immediate effect, which only took off less than a year ago.

3) Major League Baseball

FTX even cut a five-year deal with the Major League Baseball Association to include a logo patch of FTX on each of the umpires’ shirts. MLB Association representatives say “it’s probably a very good bet” that the logo patch will be removed for the next season.

FTX invested the most in star player Shohei Ohtani of the LA Angels. Ohtani’s deal included equity stakes in the fallen FTX company. As FTX entered bankruptcy, the equity stakes will most likely drop to pennies on the dollar. On top of that, there’s Tom Brady, Steph Curry, tennis star Naomi Osaka, and the legendary basketball player Shaquille O’Neal. All of these athletes had dedicated equity in recently signed juicy FTX promotion deals.

On the Flipside

  • Despite being heavily criticized for splashing enormous amounts of money on promotional sports deals, FTX is not alone.
  • Crypto.com also has an NBA arena named after itself. Furthermore, Crypto.com is an official sponsor of the upcoming FIFA World Cup 2022.

Why You Should Care

The FTX fiasco wiped out $2 billion when the company’s native FTX (FTT) token fell to pieces. The contagion created by SBF’s reckless decisions is likely to spread even further. Many celebrities involved with FTX are trying to save face.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

Author

Tadas Klimasevskis is an author & reporter, focusing on the latest tendencies of the crypto galaxy. Tadas spends his time digging deeper into specific areas like coins such as Shiba Inu (SHIB) & Dogecoin (DOGE), music NFTs, sports NFTs, digital art, and Pop culture in Web 3.0. Tadas strongly believes in crypto as disruptive innovation and keeps an eye out for new crypto hubs being developed around the globe. His vast experience in social media lets him quickly spot what’s going on in the mercurial world of crypto and deliver stories with unique spins. He has been active in blockchain and cryptocurrencies since 2019.