FTX Spent Big on Sports Sponsorships. What Happens Now?

The New York Times (NYT) (11/10/2022)
  • Crypto brokerage FTX committed hundreds of millions to sports sponsorships with the Miami Heat (19-year, $135M arena naming rights), Mercedes F1 racing team, and TSM e-sports team (10 yrs, $210M).
  • However, all of those partnerships are in doubt following FTX’s recent bankruptcy filing as solvency concerns sparked a mass exodus of deposits.
  • While teams may pursue litigation against FTX, teams sponsored by bankrupt companies usually find corporate replacements.
  • In 2002, the Houston Astros bought back its stadium naming rights from bankrupt, scandal-plagued Enron.