Crypto News – Financial advisors working for FTX Group are reportedly looking into the prospect of recovering millions of dollars in payments given to notable members of various professional athletes and teams.
Will the Money Paid to Athletes and Teams for FTX Brand Promotion be Recoverable?
According to the article, the payments were made as part of promotional contracts with Sam Bankman-Fried, the founder of FTX, before the company went under in November of last year. Notably, the FTX financial advisers revealed in court filings that they had carefully examined the payments. They examine whether the provisions of Chapter 11 bankruptcy procedures, which permit businesses to reverse transactions soon before a bankruptcy filing, could be used to take back these transfers.
Reports Show Where and How Much Payments Were Made
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 makes no mention of whether or not FTX’s advisors think all of the payments can be recouped, or whether any athletes or teams have willingly offered to return the money. The report does, however, disclose particular payments made by FTX, including the $4.9 million paid to Major League Baseball. Additionally, it includes about $12.2 million in connection with cooperation contracts with the Mercedes-AMG Petronas Formula 1 racing team.