On November 11, FTX, the cryptocurrency exchange that was once the second largest in the world in terms of trading volume, collapsed. Its founder and CEO SBF's nearly US$16 billion assets almost disappeared overnight and resigned. In this "earthquake", the sports and e-sports circles were also "seriously injured".
According to media reports, American football superstar Tom Brady (Tom Brady ) is one of the celebrity investors of FTX. In 2021, he reached an equity deal with his ex-wife supermodel Gisele Bündchen and SBF. While serving as FTX brand ambassador, he also won the native token of FTX platform in return. Although the specific transaction terms were not disclosed, the media said that the bankruptcy of this time is another round of blow to Brady 's recent financial situation.
Not only Tom Brady, basketball superstar Stephen Curry, who currently plays for the NBA Golden State Warriors, also appeared on this list. According to media reports, Curry established a partnership with FTX in September 2021 as his first investment in the cryptocurrency market. Curry's nonprofit organization Eat.Learn.Play collaborated with FTX to charity.
Because FTX once had crazy marketing in the sports circle, the list of victims has become longer and longer. According to media statistics:
In April 2021, FTX obtained the naming rights of the Miami Heat home stadium in a 19-year contract worth $135 million, making it one of the most expensive naming rights contracts in history.
In June 2021, FTX announced that it had reached a ten-year, worth US$210 million naming contract with North American e-sports club TSM, refreshing the amount of sponsorship in the e-sports industry.
In June 2021, FTX signed a contract with MLB, which is also the first time in the history of the alliance to cooperate with a cryptocurrency trading platform.
In August 2021, FTX signed a 7-year cooperation with "League of Legends" developer Riot Game to obtain brand display rights during the league.
The above is only some of FTX's sports marketing resources. By cooperating with top professional sports events, teams and players, they quickly built their own sports marketing resources kingdom within one year. At that time, no one would have thought that the collapse of FTX came so quickly that in the face of its own difficulties, this large number of sponsorship agreements may have died.
But at the same time, many big-name celebrities have already made their economic team issue a statement saying that they have never invested their funds in FTX. But a technology executive who was a banker-born has a different view on this, saying:
Even if every celebrity invested in FTX, they are embarrassed to admit this fact now.
The spreading currency circle crisis has made the sports circle "shiver". According to statistics, between March 2021 and August 2022, cryptocurrency companies have invested more than US$2.4 billion in sports marketing. Nelson estimates that by 2026, blockchain-related companies are expected to invest $5 billion in sports marketing.
SEC Chairman Gary Gensler compared the crypto market to Paid Le, believing that the collapse of FTX will make the sports community more cautious in investing in the cryptocurrency market in the future. He said:
The failure of FTX this time will undoubtedly make this market more fragile, and may make the sports circle more suspicious and cautious about the sponsorship agreements that cryptocurrency companies have smashed.
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