Crypto Crash Affects Formula 1: Mercedes Suspends Their Partnership With Collapsing Stock Exchange FTX and Will Remove Their Logos From Cars as Company, Which Sponsors Long List of Sports Teams, Files for Bankruptcy
The Mercedes Formula 1 team said today that they had suspended a partnership agreement with troubled cryptocurrency exchange FTX ahead of the penultimate race of the season in Brazil.
FTX, one of the world’s largest crypto exchanges, later announced that it is filing for bankruptcy and CEO Sam Bankman-Fried has resigned.
Mercedes signed a multi-year sponsorship deal with FTX in September 2021, when they were the reigning champions.
FTX has partnerships with a range of sports teams and stars, including Tom Brady, Steph Curry, the Golden State Warriors, Miami Heat, Naomi Osaka and the MLB.
“As a first step, we have suspended our partnership agreement with FTX,” said a team spokesperson.
FTX branding to be removed from Lewis Hamilton and George Russell’s Mercedes
Hamilton will not bear the FTX name on the back of his car this weekend in Brazil
SPORT DEALS FROM FTX
Mercedes Formula 1
Golden State Warriors
This means that from this weekend the company will no longer appear on our race car and other branded products. We will continue to monitor the situation closely as it develops.”
The Formula 1 season ends on November 20 in Abu Dhabi.
Mercedes, with seven-time world champion Lewis Hamilton and compatriot George Russell, has yet to win a race this season.
Following Bankman-Fried’s resignation, John J. Ray III, the Chicago-based attorney who oversaw the liquidation of Enron after that company’s collapse, will take over as CEO to guide FTX through bankruptcy.
Brady, Curry and Osaka are among the athletes who lost money in the recent FTX crash. Curry entered into a partnership with FTX – his first in the crypto space – in September 2021, sharing his excitement about the deal in a press release at the time.
Osaka, meanwhile, took an equity stake in FTX in March, which was described as a “long-term” contract that would pay her in cryptocurrency.
But the pair’s partnerships with FTX now appear to be worthless as the rapidly deteriorating company files for bankruptcy.
FTX Founder and CEO Sam Bankman-Fried Has Resigned as Company Files for Bankruptcy
Tom Brady appeared in commercials for FTX, including one featuring a flamethrower
Curry’s Warriors are also involved with FTX, as the exchange agreed to pay the team $10 million in an international rights sponsorship such as CNBC in December 2021. reported at the time.
In the deal, FTX obtained signage in the arena at the Chase Center, brand placements with the club’s G League and NBA 2K esports team, as well as rights to the team’s NFTs.
In March 2021, FTX also agreed to a deal with the Miami Heat for the naming rights to their arena for $135 million over 19 years.
However, Miami-Dade County now says it will investigate “all legal remedies” if FTX can’t pay its naming rights deal in the arena. The information reported.