David Vance

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<div class="cryptonews"><p class="is-style-lead">Advisers hired by FTX are looking to recoup some of the money the exchange paid to several sports stars for partnerships and endorsements.</p><p>Alvarez &amp; Marsal, financial advisers for Sam Bankman-Fried’s failed crypto exchange FTX, are reportedly probing whether <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/millions.html">millions</a> of dollars paid to <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/celebrity.html">celebrity</a> athletes, including tennis star Naomi Osaka and four-time NBA champion Shaquille O’Neal, can be recovered.</p><figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper"><blockquote class="twitter-tweet"><p>FTX Group advisers have analyzed if certain payments dished out to athletes before the company unraveled last November can be recovered in Chapter 11 https://t.co/uvmFJG5jXR</p>— Bloomberg Crypto (@crypto) September 8, 2023 </blockquote></div></figure><p>In a recent court filing, the company disclosed that it had reviewed several payments made to individual athletes, Major League Baseball (MLB), and Formula 1 racing teams to determine if they were subject to Chapter 11 rules that would allow FTX to reverse them. The advisers hope the funds may be used to offset claims made by the bankrupt exchange’s customers and creditors.</p><p>FTX used its association with sports stars and leagues such as the MLB, NBA, and Formula 1 (F1) to elevate its status. It reportedly paid $4.9 <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/million.html">million</a> to the MLB and $12.2 <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/million.html">million</a> to Formula 1 before filing for bankruptcy in November 2022.</p><div class="cn-block-related-link"><span class="cn-block-related-link__prefix"> You might also like: </span> FTX’s advertising under scrutiny as DOJ questions FTX.US separation </div><p>The MLB deal required umpires to wear FTX-branded patches for a time, while the Formula 1 payment was to foster a sponsorship between FTX and one of F1’s leading teams, Mercedes-AMG Petronas.</p><p>According to the document, FTX paid $2.5 <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/million.html">million</a> to Authentic Brands, a company associated with O’Neal. It also revealed that the exchange paid Osaka $2 <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/million.html">million</a> only days before it filed for bankruptcy. The FTX advisers claim the exchange paid $4.3 <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/million.html">million</a> to O’Neal and $3.2 <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/million.html">million</a> to Osaka.</p><p>FTX also disclosed it had paid $3.4 <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/million.html">million</a> to the Golden State Warriors and an additional $242,000 to SC30, a company owned by the team’s star player Stephen Curry.</p><p>According to Alvarez &amp; Marsal, a portion of the F1 payment could be recouped if Chapter 11 rules were applied.</p><p>Other athletes who made money from FTX endorsements include Trevor Lawrence of the Jacksonville Jaguars, who received $500,000, and former Boston Red Sox David Ortiz, whose charity got $600,000.</p><div class="cn-block-related-link"><span class="cn-block-related-link__prefix"> Read more: </span> Former FTX executive will reportedly plead guilty to criminal charges </div><span class="google-news-banner__label">Follow Us on Google News</span></div><p>Source: <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/ftx-looks-to-claw-back-millions-paid-to-shaq-other-celebrity-endorsers-tbt62150.html">https://thebittimes.com/ftx-looks-to-claw-back-millions-paid-to-shaq-other-celebrity-endorsers-tbt62150.html</a></p>

FTX looks to claw back millions paid to Shaq, other celebrity endorsers

TheBitTimes

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