Tom Brady’s crypto partner FTX teeters on bankruptcy
Buccaneers quarterback Tom Brady has many non-football business interests. He may soon have one less.
FTX is currently on the verge of bankruptcy.
Company owner Sam Bankman-Fried acknowledged the company’s possible implosion. I won’t claim to understand details or an industry that I haven’t tried to understand (and probably couldn’t even if I did), but I do know this – when a business owner candidly admits “I screwed up” on Twitter, things are not going well.
Brady won’t lose any of his own money. He received an equity stake in exchange for becoming a brand ambassador. And he put his own brand in motion to help promote FTX, in an obvious effort to improve the value of his part of the deal.
His most recent tweet mentioning FTX was posted on October 15, while the main sponsor of Brady’s “TB Times” chart before a game in Pittsburgh that the Buccaneers lost.
In a nutshell, FTX was caught in a liquidity crunch. Binance had a tentative deal in place to bail out FTX. That deal recently fell apart, setting off what could be a death spiral for the company and rendering Brady’s piece of the pie potentially worthless.
And it’s not just Brady. He and his ex-wife became owners of the business in 2021, with Brady becoming the brand ambassador and Gisele Bundchen named the company’s environmental and social initiatives advisor. They appeared in an ad in which Brady “wants a trade”, hinting it was about football before clarifying it was about transacting on the FTX platform.
FTX also has a naming rights deal with home venue Miami Heat, MLB sponsorship that includes referee patches, and an agreement with Mercedes-AMG Petronas racing team in F1.
Obviously, Brady will not go bankrupt. But his crypto game could soon go bankrupt. And his carefully cultivated TB12 brand is bound to take a hit, given that he’s aligned himself with – and actively promoted – a company that may soon collapse like a proverbial house of cards.