FTX Seeks To Reverse Millions Of Dollars
A report revealed that FTX Group’s financial advisers are exploring the possibility of recovering millions of dollars in payments made to prominent athletes and teams.
The report reveals that FTX made payments as part of promotional agreements with founder Sam Bankman-Fried before the company’s collapse in November last year. FTX financial advisers scrutinized these payments in court documents and are examining if they could be reversible under Chapter 11 bankruptcy rules.
The report revealed how FTX used the star power of famous athletes for marketing purposes, even though it did not break down how much money the company spent on endorsements. It featured stars from the National Basketball Association, Formula 1, Major League Baseball, and Major League Baseball teams. The report by FTX reveals specific payments made by the company, including $4.9 million to Major League Baseball and $12.2 million related to partnership agreements with Formula 1 racing team Mercedes-AMG Petronas. The company also disclosed $3.4 million in payments to the NBA’s Golden State Warriors and nearly $242,000 to Stephen Curry’s business, SC30 Inc. FTX warns that the financial disclosures may not be complete due to a lack of detailed historical amortization information and may be subject to further amendments.
(With inputs from Shikha Singh)
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