FTX made massive sponsorship deals with sports leagues and star athletes like Tom Brady. Here's what experts say could happen after the crypto exchange's implosion.

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Samantha DelouyaNov 10, 2022, 05:42 IST
FTX made massive sponsorship deals with sports leagues and star athletes like Tom Brady. Here's what experts say could happen after the crypto exchange's implosion.

Sam Bankman-Fried, founder and CEO of crypto exchange FTX.FTX Official/YouTube

  • Sam Bankman-Fried's FTX poured millions of dollars into naming rights, partnerships, and sponsorships in the sports world.
  • With FTX's survival in question, massive deals with the likes of Tom Brady, the Miami Heat, and MLB are in jeopardy.

Sam Bankman-Fried's crypto-exchange platform FTX is facing an uncertain future.

Rival platform Binance had initially agreed to bail out FTX as the company faces a severe liquidity crisis after getting hit with $6 billion in withdrawals in just 72 hours, but Binance announced Wednesday that the deal fell through.

FTX was once worth $32 billion, as cryptocurrency prices surged in 2020 and 2021. During that time, Bankman-Fried poured millions of dollars into many high-profile sponsorships in the world of sports, including partnerships in baseball, basketball, football – and even Formula One.

Now that it is looking increasingly likely that the company may not survive its current predicament, questions loom about the future of these deals.

Here are some of FTX's most high-profile sports deals and what experts say may become of them:

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One of FTX's most visible partnerships is with Miami Heat. Its home court was renamed FTX Arena in June 2021.

One of FTX's most visible partnerships is with Miami Heat. Its home court was renamed FTX Arena in June 2021.
FTX Arena in MiamiThe Next Miami

FTX had signed a 19-year deal with the Miami basketball arena for $135 million. It was set to be called FTX Arena until 2040.

This isn't the first time a stadium had the name of a bankrupt company if FTX doesn't survive. Minute Maid Park, home of the Houston Astros, was once named Enron Field. Enron famously declared bankruptcy in 2001.

Michael Lewis, a professor of marketing at Emory University's business school, said the arena would likely be renamed if FTX does not survive or has not yet paid for the rights in full.

"At the end of the day, if the organization is gone, it's almost guaranteed that if the lawyers were doing their jobs with minimal competence, that suddenly those naming deals go back and hit the market again," he said.

FTX has been the "Official Cryptocurrency Exchange brand of MLB" since June 2021. All Major League Baseball umpires wear a patch with FTX's logo as part of the deal

FTX has been the "Official Cryptocurrency Exchange brand of MLB" since June 2021. All Major League Baseball umpires wear a patch with FTX's logo as part of the deal
MLB Umpires all sport FTX patchesNick Cammett/Diamond Images

The MLB called FTX its "first-ever umpire uniform patch partner" in a press release announcing the deal.

Joe Favorito, a professor of sports management at Columbia University, said those patches could disappear.

"If there's no company, the branding goes away," he said.

"The bigger concern is if you sold rights and you're anticipating revenue coming in that has not come in, then you run into a problem," he added.

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In December 2021, The Golden State Warriors announced a "first-of-its-kind" cryptocurrency partnership in professional sports, naming FTX its "Official Cryptocurrency Platform and NFT Marketplace."

In December 2021, The Golden State Warriors announced a "first-of-its-kind" cryptocurrency partnership in professional sports, naming FTX its "Official Cryptocurrency Platform and NFT Marketplace."
Golden State WarriorsMSG

While it's unclear how much FTX paid for the sponsorship, it is possible the exchange didn't pay in full upfront, said Favorito.

"If you have money that's owed to you on the books for any company, and the company goes out of business, you have to figure it out through bankruptcy court," he said.

"Can you even make it back? That's the risk you run," he added.

FTX had several celebrity endorsers, mainly from the sports world. Football star Tom Brady appeared in commercials for the platform.

FTX had several celebrity endorsers, mainly from the sports world. Football star Tom Brady appeared in commercials for the platform.
Tom Brady.Getty/Cliff Welch

Tom Brady had one of the more significant deals with FTX of all its celebrity endorsers. He and his ex-wife Gisele Bündchen were not just ambassadors for the company; they were shareholders.

"It's an incredibly exciting time in the crypto-world, and Sam (Bankman-Fried) and the revolutionary FTX team continue to open my eyes to the endless possibilities," Brady said when announcing the partnership.

Brady stands to lose a significant portion of his FTX investment, if not all of it.

Lewis said Brady's reputation is not at risk of taking much of a hit if FTX folds.

"Brady has close to a bulletproof brand, and I suspect the impact will be relatively small," he said,

"If the organization is gone, these sponsorship deals tend to disappear. The bigger question becomes... can they recoup what they're owed if a company goes bankrupt?" Lewis added.

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Stephen Curry also appeared in FTX commercials and signed a deal with the company. Here are some other celebrities who had deals with FTX:

Stephen Curry also appeared in FTX commercials and signed a deal with the company. Here are some other celebrities who had deals with FTX:
Steph Curry in FTX commercialFTX

Naomi Osaka

Naomi Osaka
Naomi Osaka wears an FTX patch at the US OpenMatthew Stockman/Getty Images
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Gisele Bündchen

Gisele Bündchen
Gisele Bündchen for FTXFTX

Kevin O'Leary

Kevin O'Leary
Sam Bankman-Fried dines with Kevin O'Leary at the SALT NY ConferenceSALT NY
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Shaquille O'Neal

Shaquille O'Neal
Shaq is featured on FTX's websiteFTX

FTX didn't stop with the pros, though. The crypto company even invested in college sports. UC Berkeley signed a $17.5 million deal with FTX to sponsor its athletic department – and agreed to be paid entirely in crypto.

FTX didn't stop with the pros, though. The crypto company even invested in college sports. UC Berkeley signed a $17.5 million deal with FTX to sponsor its athletic department – and agreed to be paid entirely in crypto.
FTX Field at California Memorial StadiumThe California Golden Bears

It is unclear if FTX paid UC Berkeley in full for the rights. The value of most prominent cryptocurrencies has significantly depreciated since the 10-year deal was announced last summer.

As a result of the deal, the school's California Memorial Stadium is renamed FTX Field.

"The big challenge is when you're trying to find new revenue, and you work for a team or a league. The question is, do you take the risk for a company that could be high risk, high reward, and take the chance that this can happen, or do you go back and say maybe we're not going to take the risk, and we're going to be much more conservative," Favorito said.

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FTX even invested in a Formula One racing team called Mercedes-AMG Petronas

FTX even invested in a Formula One racing team called Mercedes-AMG Petronas
Mercedes-AMG Petronas Formula One Team car with FTX logoJeffrey Greenberg/Universal Images Group

Lewis said Bankman-Fried's decision to embed FTX in the sports world makes sense.

"Sports are the gold standard in terms of sponsorships... There's a body of shared history and shared knowledge and it unifies people across races, religions, and political affiliations. As America has polarized and fragmented, sports is probably the last thing standing that has that kind of unifying force," he said.

FTX also invested in e-sports events like Riot Games' North American League of Legends Championship Series, and Comcast-owned e-sports tournament organizer, Nerd Street Games.

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