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Monday, June 24, 2024

FTX Collapse Hits Miami Heat, Brady, Curry

  • The stunning fall of FTX has implications across the sports world.
  • Deals with the Miami Heat, Tom Brady, and others are in flux.
FTX-MLB
Ron Chenoy-USA TODAY Sports

The fall of a crypto giant is causing reverberations across the sports world.

Crypto exchange FTX is scrambling for around $8 billion — including $4 billion just to stay solvent — after rival exchange Binance backed out of a deal to acquire it.

The fall of FTX will likely have implications for the athletes, teams, and sports leagues that made deals with the crypto exchange.

  • A Miami-Dade County representative told Front Office Sports that it will explore legal remedies should FTX be unable to pay the balance on its 19-year, $175 million naming rights deal for the Miami Heat’s arena, signed in March 2021.
  • FTX also has deals with MLB, UC Berkeley, the Mercedes Formula 1 team, and star athletes including Tom Brady, Steph Curry, and Shohei Ohtani.
  • Brady was an investor in the company, which was recently valued at $32 billion

FTX and the Los Angeles Angels reportedly abandoned a deal over the summer due to falling crypto prices.

Another Crypto Tumble

FTX’s own token lost over 88% of its value in the past week, dropping to a market cap of $1.16 billion.

Its precipitous fall has shaken the broader crypto market: Bitcoin and Ethereum dropped a respective 18.9% and 22.7% over the past five days.

It is unclear if the fallout will affect existing tie-ups with other crypto exchanges, such as Binance’s deals with Cristiano Ronaldo and Serie A club Lazio, or Crypto.com’s 20-year, $700 million deal for the naming rights to the home of the Los Angeles Lakers, Clippers, and Kings.

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