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The now insolvent cryptocurrency exchange, which has plans to resume operations in the future, is reportedly seeking to recover some of the funds it disbursed to professional athletes and teams that previously endorsed it.
Among those individuals, as reported by Bloomberg, are Shaquille O’Neal and Naomi Osaka, although Tom Brady has not been mentioned.
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- At its height in 2021, FTX was thriving, securing substantial agreements for naming rights to venues and being endorsed by a variety of celebrities and professional athletes. Naturally, the exchange incurred costs for these endorsements.
- Some of the most prominent figures include Shaquille O’Neal, Steph Curry, and Naomi Osaka. Tom Brady, on the other hand, opted for a different strategy, as he and his former spouse took an equity position in the exchange.
- The sudden and dramatic downfall of FTX in late 2022, however, altered the landscape not only for the company, its founders, and employees but also for the aforementioned celebrities, some of whom found themselves involved in class action lawsuits.
- FTX’s new leadership, under CEO John J. Ray III, has implemented various strategies to recover some of the funds owed to its numerous creditors, while the founder – SBF – believed to be the primary instigator of the collapse, awaits his trial.
- As per a Bloomberg report, FTX Group is now aiming to reclaim some of the payments made to O’Neal, Osaka, and others for their promotional efforts over the years.
- The financial advisors engaged by the company are assessing whether these payments can be retrieved in Chapter 11 proceedings. Court filings indicate that the exchange categorized them as “prepayments related to advertising or sponsorship deals.”
“The crypto platform disclosed roughly $4.9 million disbursed to MLB, which for a time required umpires to wear patches bearing FTX’s logo, and at least $12.2 million related to partnership agreements with Formula 1 racing team Mercedes-AMG Petronas. The platform disclosed $3.4 million in payments to the NBA’s Golden State Warriors and nearly $242,000 in payments to star player Stephen Curry’s business, SC30 Inc.” – reads the report.
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