A cryptocurrency platform has filed for bankruptcy — which could have serious ramifications for its partners across sports.

FTX announced on Friday that the company, along with West Realm Shires Services Inc., Alameda Research Ltd., and roughly 130 affiliated companies, “have commenced voluntary proceedings under Chapter 11.”

Before the announcement, the fallen crypto giant — whose CEO Sam Bankman-Fried resigned on Friday — was looking to secure $8 billion after Binance backed out of a deal to acquire the platform.

Valued at $32 billion in January, FTX had made a name for itself in the sports industry in recent years. The bankruptcy filing raises questions about its numerous high-profile sponsorships.

Miami-Dade officials who negotiated a 19-year, $135 million contract with the platform for naming rights to the Miami Heat’s home arena hinted at legal action if FTX is unable to meet its obligations.

In a joint statement to Front Office Sports on Friday night, the Heat and Miami-Dade County said they “are immediately taking action to terminate our business relationships with FTX, and we will be working together to find a new naming rights partner for the arena.”

Mercedes’ Formula 1 team, which initially claimed it would keep the FTX logos on its cars during the Sao Paulo Grand Prix this weekend, reversed course on Friday, suspending its agreement.

MLB, the Golden State Warriors, UC Berkeley, Tom Brady, Steph Curry, and Shohei Ohtani had also struck deals with FTX.

Crypto Collision 

FTX isn’t the first crypto exchange bankruptcy to disrupt the sports world.

Voyager entered an agreement with the NWSL in December 2021 in which players would receive a portion of the proceeds from the deal in cryptocurrency — but filed for bankruptcy in July. In September, FTX won Voyager’s assets for $1.4 billion.

The San Francisco 49ers’ investment vehicle is making big moves across the pond.

49ers Enterprises is set to buy all of Premier League club Leeds United at a reported valuation of up to $558.1 million after securing sufficient funds to increase its stake.

• The team was bought by Andrea Radrizzani for $51.7 million in 2017. Leeds was in the second-tier EFL Championship league at the time and was promoted to the Premier League for the 2020-21 season.
• The 49ers took a 15% stake in 2018 for a reported $11.8 million. Their stake grew to 37% in January 2021 and up to 44% the following November.
• 49ers Enterprises holds an option to buy 100% of the team that expires in January 2024. The transaction could be completed before then, and Radrizzani may retain a small stake.

The deal will also include Leeds’ century-old Elland Road stadium.

Promotion and a Raise

Leeds’ promotion to the Premier League had a bigger effect on its profits than the pandemic.

The team banked a $30.6 million profit in 2020-21, despite playing the entire season in empty stadiums, compared to a $72.8 million loss the previous season.

Leeds received $162.8 million in league distributions in 2020-21 and $133.9 million the following season.

The largest global franchiser of boutique fitness brands continues to grow exponentially.

Xponential Fitness — owner of companies like Pure Barre, Rumble, and YogaSix — generated $63.8 million in revenue in Q3 2022, a 56% increase year-over-year. It attributed the growth to equipment installations and royalties from sales in North America.

• North America system-wide sales hit $264.8 million in Q3, up 37% year-over-year.
• The company sold 258 franchise licenses and opened 128 studios during the quarter.
• Net losses reached $13.1 million in Q3 2022, compared to $8.9 million in Q3 2021.
• As of Sept. 30, the company had $136.5 million in long-term debt.

Thanks to the strong results, Xponential has raised its full-year revenue outlook to between $235 million and $240 million in FY2022, up from a previous guidance of $211 million-$221 million.

It expects to open 500-520 new studios during the fiscal year. 

On the Market 

In June 2021, Xponential filed for an initial public offering after a yearlong delay caused by the pandemic. A month later, the company went public after raising $120 million in its IPO.

Shares of Xponential have reached as high as $23.60 in a little over one year on the NYSE.