Solvency issues and a volatile market have facilitated the stunning collapse of FTX, with the cryptocurrency giant filing for Chapter 11. Seen as a crushing blow to blockchain technology and the future of cryptocurrency, FTX’s demise brought the financial world to its knees, costing investors billions in lost funds.
You may be wondering, what does this have to do with Tom Brady? The Bucs veteran joined FTX as a brand ambassador last summer, appearing in commercials alongside his now ex-wife Gisele Bundchen while receiving undisclosed equity, all in the form of cryptocurrency. It’s unclear how much of the quarterback’s fortune was invested in crypto, though considering his affiliation with FTX, Friday was, in all likelihood, a disastrous day for Brady’s wallet, putting a significant dent in his net worth.
Between his preferred cryptocurrency exchange going belly up and a costly divorce settlement, it’s a good thing Brady has a $375-million payday coming whenever he decides to start his broadcast career with Fox. Brady wasn’t the only big name affected by FTX’s bankruptcy. The Miami Heat entered a naming rights deal with FTX last year, rebranding American Airlines Arena as FTX Arena for $135 million. Miami-Dade County announced Friday the team will begin looking for a new sponsor, effectively ending FTX’s naming rights deal after just 526 days (obviously much shorter than the 19-year pact they’d agreed to).
FTX was also partners with MLB, with patches for the now defunct crypto app appearing on umpires’ uniforms. With the crypto market in freefall—Bitcoin sunk to $16,837 Friday, its lowest value in almost two years—athletes and teams will probably exercise a bit more caution going forward, thinking twice before getting into bed with companies promoting alternate forms of currency.
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