Cryptocurrency exchange, FTX, which was once valued at USD$32 billion (AUD$47.9 billion), is no more and with it, several high-profile commercial deals with sporting organisations from around the world.
Following an attempted takeover that was abandoned by competitor Binance, FTX filed for bankruptcy on Friday 11 November, which saw their logo and branding removed from sporting portfolios the world over.
National Basketball Association (NBA) team, The Miami Heat have announced they will be looking for a new commercial partner to hold their arena’s naming rights, seeing an early end to a USD$135 million (AUD$202 million) deal with FTX, signed last year that would have lasted 19 years.
A change will also be seen across Major League Baseball (MLB), with the competition’s umpires having adorned the FTX logo on their jersey.
Additionally, FTX also had naming rights deals with college football team UC Berkeley (worth USD$17.5 million – AUD$$26.2 million) and esports team, TSM (worth USD$210 million – AUD$314 million)
Commenting on the events, a spokesperson for Mercedes AMG Petronas F1 Team, who had a sponsorship deal with the crypto exchange, said: “As a first step, we have suspended our partnership agreement with FTX.”
“This means the company will no longer appear on our race car and other branded assets from this weekend.
“We will continue to monitor closely the situation as it evolves,” they said
Several high-profile athletes were also involved with FTX, with Shaquille O’Neal, Steph Curry, Tom Brady and his wife Gisele Bundchen, and Naomi Osaka, among others having reportedly signed on to be brand ambassadors in exchange for an equity stake in the crypto exchange.
FTX founder, Sam Bankman-Fried apologized to investors on Twitter ahead of filing for bankruptcy, saying: “I, ultimately should have been on top of everything, I clearly failed in that, I am sorry.”
