FTX crash puts multimillion-dollar sports deals at risk

The FTX stock market crash not only affects its users and investors, but also the sports world. This is because the company has switched to sponsoring sports teams and leagues.

In the midst of the stock market liquidity crisis. the future of its sports business is unknown.as the company has not clarified what actions it will take in this regard.

The company led by Sam Bankman-Fried has, among its results The most significant achievement was naming the Miami Heat basketball team’s arena after the company.

The name change was the result of an agreement reached in March 2021 by 135 million dollars and with a 19-year concession to FTXto take over the naming rights to what was formerly known as American Airlines Arena and renamed FTX Arena.

The exchange’s connection to the basketball world did not stop there. Like reported CryptoNews, FTX signs deal with NBA teams Washington Wizards and Golden State Warriorsto advertise in their stadiums and also became the official change house of both teams.

It also initiated sponsorship of MLB and Formula 1.

Another important sports agreement reached by the exchange, was. materialized in June 2021 with Major League Baseball (MLB), the largest and most important baseball league in the world. The partnership includes. Presence of the FTX logo on umpires’ uniforms and worldwide marketing rights. Associated with MLB trademarks, logos and special events.

FTX has also ventured into speed sports, with signing an agreement with the Mercedes-AMG Petronas Formula One racing team. The partnership covers several racing seasons with the FTX logo prominently featured.on both the cars and the drivers’ overalls. The FTX logo also appears on the team’s fleet of Mercedes-Benz trucks, garage, and communication facilities.

The FTX debacle was triggered last weekend when the price of the exchange’s native token (TLT) fell sharplyafter Changpeng Zhao, CEO of the Binance exchange, announced the divestment of his holdings in the digital currency..

The turn of events led Changpeng Zhao to accept the agreement of purchase of FTX on Nov. 8, a move that will no longer be finalized according to Binance’s latest announcement.

Zhaoexplainedthat FTX is experiencing “a severe liquidity crisis.”as reported by CryptoNews. Bankman-Fried, for its part, had commented that the move was aimed at safeguarding the money of its platform customers.