FTX, once the world's second largest exchange, declared bankruptcy only a week after experiencing the crisis, and SBF's worth dropped from $26 billion (wealth valuation) to close to zero overnight. At present, there are still billions of dollars of loopholes on FTX's balance sheet, hundreds of companies have been implicated, and the encrypted financial world has been hit hard. Outside the encryption circle, the chain reaction triggered by the FTX thunderstorm is also continuing to expand.
Two years ago, FTX entered the sports and e-sports industry in an all-round way. By sponsoring teams, sports stars, and cooperating with NFT, FTX quickly broke through the circle outside the encryption circle. But while gaining a lot of traffic, FTX's strategy has also formed a certain binding relationship with each other. The FTX bankruptcy incident also brought a big impact to the sports and e-sports industry.
Last year, FTX announced a 19-year commercial partnership with Miami-Dade County, sponsoring the home stadium of the NBA Heat (Miami Heat) and changing its name to "FTX Arena". The entire cooperation project has a scale of up to US$135 million, including investing US$90 million to the Dade County government to launch local economic revitalization programs, donating US$5 million to support Dade County’s Fintech education, residents’ financial health and other programs, and FTX will also pay the Miami Heat an additional $2 million per year.
After the FTX incident came out, the cooperative relationship between the two parties came to an end. Currently, the Miami Heat have announced the termination of their business relationship with FTX. Although Miami-Dade County Mayor Levine Cava stated that FTX had paid the county $20 million before the end of the NBA Heat arena naming rights deal, according to the previous contract signed by the two parties,This default by FTX also requires paying off a total of $16.5 million in arrears over the next three years, and if the payment is not made within 10 business days, the county is entitled to charge interest at an annual rate of 12% until payment is made, of which $14 million is required for the first year.
Coincidentally. Last June, FTX also signed a 10-year, $210 million naming rights agreement with TSM. FTX is required to pay $21 million per year for 10 years, and TSM will use the "TSM FTX" name for all competitions it participates in, including League of Legends, VALORANT, Apex Legends, and more.TSM also purchased $1 million in FTT tokens for distribution among its employees and players. The bankruptcy of FTX caused the price of FTT tokens to plummet, falling as low as $1.2. This also caused a lot of losses to the players.image description
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also,FTX also signed a seven-year deal with the LCS (League of Legends Championship Series) last year, and a one-year deal with FURIA worth approximately $3.2 million in April this year.It has not been disclosed how much FTX has paid out. But FURIA's co-founder André Akkari has announced on Twitter that he has terminated the sponsorship agreement with FTX.
In addition to the e-sports industry,FTX has also invested millions in MLB and Formula 1 games.
FTX signed a 5-year contract with MLB and became MLB's first referee uniform Logo partner. Beginning with the All-Star Game on July 13 last year, referees will wear referee uniforms with the FTX.US Logo for the rest of the 2021 season. Additionally, the agreement grants FTX global marketing rights related to MLB. Fans can see FTX branding at nationally televised MLB games, MLB.com, MLB Network, MLB.TV and social media platforms. This is indeed the best opportunity for FTX to break through the circle and attract traffic and funds from outside the circle. Although MLB has not responded to this incident at present, it will be a certainty to remove the FTX Logo from the referee uniform.
In contrast,The Mercedes-AMG Petronas F1 Team, a Formula 1 team, responded quickly after the FTX bankruptcy incident, immediately suspended its partnership with FTX, and removed the FTX Logo from the driver's uniform and vehicle.
In addition to these leagues, teams, and teams being affected, many sports celebrities were also hit hard by the incident.
In June 2021, Super Bowl VII champion Tom Brady and his then-wife Gisele Bündchen said they had reached equity deals with FTX.com and FTX.US. And invested about $650 million to increase their stake in FTX. The deal will make Tom Brady a brand ambassador for the exchange. At that time, it was in the bull market of the encryption market. Tom Brady and Gisele Bündchen made a lot of FTX promotional videos. The cooperation between the two made Tom Brady and Gisele Bündchen a lot of money. However, after the FTX bankruptcy incident, the price of FTT plummeted,The value of the equity owned by Tom Brady has also been close to zero. Tom Brady also removed FTX-related promotional content on social media.
Before the FTX bankruptcy incident, Tom Brady announced his return to the court. After experiencing this incident, Tom Brady was also ridiculed by everyone. It seems that he has to play until he is 50 years old to make up for the assets lost in FTX.
It is understood that, in addition to Tom Brady,NBA Warriors star Stephen Curry and Japanese women's tennis star Naomi Osaka have all endorsed FTX, and they also chose to change "part" of their remuneration to platform shares and virtual currency. Shohei Otani, a talented MLB star, chose to pay "full amount" of the endorsement fee in shares and virtual currency.The bankruptcy of FTX also caused their endorsement fees to be wiped out.
In one year, FTX used several dazzling sports marketing to bring Crypto into the public's field of vision, and also made FTX a household name. However, with the thunderstorm of FTX, these sports strategies related to it fell apart. , FTX also went out of the circle again in a way that perhaps even he had never imagined.
