The FTX contamination continues to spread this month, as FTX’s former SBF CEO signed Chapter 11 bankruptcy papers just a week earlier. The collapsing cryptocurrency exchange and its disgraced founder have invested around $375 million in a long-term sports partnership. The athletes were also given ownership rights to the embattled project. After a two-year spree of signing deals with sports franchises and celebrities, most are now anxiously looking for the door.
1) Miami Heat
The NBA franchise has announced a 19-year deal with cryptocurrency exchange FTX to acquire the name rights to The Heat’s home venue in April 2021 for $135 million. However, the Miami Heat signed a general release on November 12, 2022 putting the FTX deal on hold. They said the reports about Sam Bankman-Fried’s shady ways and FTX were “extremely disappointing”. Hence, the Miami Heat’s home ground is bound to change the name in the near future.
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NBA’s Miami Heat to end relationship with FTX, get new arena name https://t.co/X3BiLWHAhr
– Coinut Exchange – We’re Hiring! (coinut_exchange) November 18, 2022
2) Washington Wizards
In addition, FTX has sponsorship deals with several Washington sports teams. Including magicians, capitals and mystics. This move allowed FTX to enter the political center of the United States. Now the Washington Wizards have suspended their FTX deal with immediate effect, which only took off less than a year ago.
The Wizards have discontinued their FTX promotion, a partnership that was announced less than a year ago. But the already produced FTX-sponsored fan giveaways are still going on. Details here: https://t.co/VVZPZnwPZ8
— Ava Wallace (@avarwallace) November 18, 2022
3) Major League Baseball
FTX even struck a five-year deal with Major League Baseball to include an FTX logo patch on each of the umpires’ jerseys. MLB Association representatives say “it’s probably a very good bet” to remove the patch logo for the upcoming season.
FTX has invested the most in star player Shohei Ohtani of the LA Angels. Ohtani’s deal included stakes in collapsed FTX. With FTX entering bankruptcy, equity stakes will likely drop to pennies on the dollar. Furthermore, there are Tom Brady, Steve Curry, tennis star Naomi Osaka, and legendary basketball player Shaquille O’Neal. All of these athletes have allocated shares in recently signed FTX merchandising deals.
Below is a complete list of all the celebrities who have been sued for promoting FTX.
– Unusual whales (@unusual_whales) November 17, 2022
on the flip side
- Despite being criticized for spending massive amounts of money on merchandising sports deals, FTX is not alone.
- Crypto.com also has an NBA arena named after it. Moreover, Crypto.com is the official sponsor of the upcoming FIFA World Cup 2022.
Why should you bother
The FTX fiasco wiped out $2 billion when the company’s original FTX (FTT) token crashed. The infection created by the SBF’s reckless decisions is likely to spread even further. Many of the celebrities involved in FTX are trying to save face.
Learn more about the stunning FTX fiasco:
The Bahamas securities regulator confirms that it has ordered FTX to transfer assets to the government wallet
Top esports organization TSM has suspended a $210 million naming rights deal with FTX