Miami Heat, Mercedes F1, MLB, Athletes Distancing Themselves From Bankrupt FTX

By Barry Janoff

UPDATED November 17, 2022: In a move that did not come as a great surprise, MLB said today that FTX would not return as a league sponsor after the now bankrupt cryptocurrency platform had its logo on the uniforms for umpires during the 2022 season as part of a multi-level deal naming the compamy the “official cryptocurrency exchange brand of MLB.”.

"The FTX development was a little jarring," commission Rob Manfred said during a media conference in MLB's New York offices today. As to whether the alliance has ended? “I think that’s probably a pretty good bet.

“We have been really careful moving forward in this space. We've been really religious about staying away from coins themselves as opposed to more company-based sponsorships. We think that was prudent particularly given the way things unfolded.”

According to Manfred, “We will proceed with caution in the future."

November 12, 2022: In a national campaign for global cryptocurrency firm FTX, Stephen Curry explained that he was “not a crypto expert . . .  but I don’t need to be. With FTX, I have everything I need to buy, sell and trade crypto safely.”

It turns out that FTX was not a crypto expert, either.

The cryptocurrency exchange —which has deals that include the Miami Heat, Golden State Warriors, Mercedes-Benz F1, MLB, UCBerkeley, eSports TSM and numerous athletes — Friday said it had filed for bankruptcy and that founder and CEO Sam Bankman-Fried had resigned.

Earlier in the week, FTX said that rival Binance was planning to buy the firm, which was valued at $32 billion by industry analysts, Binance then changed its plans.

“In the beginning, our hope was to be able to support FTX’s customers to provide liquidity,” Binance posted to its social media platforms. “But the issues are beyond our control or ability to help.”

According to various news reports, Bankman-Fried said that “customers had demanded withdrawals upward of $6 billion.”

“Collapsed cryptocurrency trading firm FTX confirmed there was ‘unauthorized access’ to its accounts, hours after the company filed for Chapter 11 bankruptcy protection Friday,” per AP.

Also adding to FTX’s problems is a potential investigation Securities and Exchange Commission regarding alleged misuse of customer deposits, according to various news reports.

Beyond the impact on the financial world, sports teams and athletes were immediately feeling the pain.

The Miami Heat and Mercedes-Benz Formula 1 Mercedes-AMG Petronas team were among the sports organizations immediately seeking to end or distance themselves from FT alliances.

The Heat said it was moving to stop its arena naming rights deal with the firm while Mercedes-Benz said it was removing FTX branding from its cars and suspending its alliance.

FTX pacts also include MLB, which has had FTX patches on all umpires’ shirts; the Golden State Warriors; UC Berkley via a stadium naming rights deal; and eSports organization TSM (Team SoloMid), which changed its name to TSM FTX as part of a $210 million pact.

“Along with the rest of the world, TSM has been closely following the situation surrounding FTX,” the eSports organization posted to social media. “We have no insight into the matter other than what has been reported publicly. We are currently consulting legal counsel to determine the best next steps to protect our team, staff, fans and players.

“To be clear, TSM is built on a solid foundation. We are stable and profitable, and we continue to forecast profitability for this year, next year, and beyond. We look forward to a great year in 2023.”

In addition to Curry, FTX athlete investors and spokespersons include Tom Brady, Shohei Ohtani, Trevor Lawrence, Naomi Osaka, Shaquille O’Neal and David Ortiz.

“The reports about FTX and its affiliates are extremely disappointing,” the Miami Heat posted to their Web site and social media platforms on Friday.

“Miami-Dade County and the Miami Heat are immediate taking action to terminate our business relationships with FTX, and we will be working together to find a new naming rights partner for the arena.”

The Heat deal, signed in June 2021 and initiated this season, was valued at $135 million over 19 years, according to industry analysts.

The deal also included a contribution to a Peace & Prosperity Plan intended to “reduce gun violence, create jobs and invest in housing, commercial, and business development.”

“We are proud of the impact our Peace and Prosperity Plan — sponsored by County Commissioner Keon Hardemon and funded through the original deal — is already having in preventing violence and creating opportunity for young people across Miami-Dade,” posted the Heat.

“And we look forward to identifying a new partner to continue funding these important programs in the years ahead.”

Following the FTX news, Mercedes-Benz posted to social media regarding their deal, signed in September, 2021, “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."

In December 2021, the NBA’s Warriors and FTX unveiled an alliance, valued at $10 million by industry analysts, giving FTX presence throughout Chase Center an alliances with Golden State’s NBA G-League and 2K teams. Indoor signage and other references are likely to soon be removed.

In August 2021, FTX acquired ten-year naming rights to UC Berkeley’s sports venue — renamed FT Field at California Memorial Stadium — for $17.5 million, according to analysts. The University has not yet said how it plans to proceed but likely will follow Miami and seek a new naming rights partner.

In June 2021, MLB, stating that “our fans have been early adopters in using new technologies to engage with our game,” unveiled a long-term, global partnership with FTX and West Realm Shires Services, owners and operators of FTX.com and FTX.US, naming FTX as the “official cryptocurrency exchange brand of MLB.”

FTX said it was the first partnership between a pro sports league and a cryptocurrency exchange.

The alliance provided FTX with worldwide marketing rights associated with MLB marks, logos and special events.  Under the deal, FTX.US also become MLB's first umpire uniform patch partner.

Also in June 2021, FTX aligned with TSM, the most valuable eSports organization in the U.S. at $540 million, according to Forbes.

Ohtani, whose FTX deal was unveiled last November, was receiving “all of his compensation in equity and cryptocurrencies, illustrating his strong belief in both FTX and the crypto industry.,” according to the company at the time.

Curry, Brady (and then wife Gisele Bündchen), Osaka and other athlete investors also were receiving undisclosed equity in cryptocurrency.

MLB Signs FTX Crypto Deal With Umpire Uniform Patches

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