The seven-time Super Bowl winner’s shares in FTX are now worthless following the company’s bankruptcy. Brady is also facing investor lawsuits.
The FTX collapse dealt a devastating blow to popular NFL quarterback Tom Brady, causing him significant financial losses. Known for his role as an ambassador for FTX, Brady frequently appeared in its commercials, endorsing the cryptocurrency company.
According to The New York Times, he had struck a lucrative deal with the now-defunct organization, receiving a hefty payment of $30 million. Most of this compensation was in the form of FTX shares, a risky but potentially rewarding investment.
On top of that, Brady’s former partner, supermodel Gisele Bündchen, also received a substantial $18 million worth of FTX stock as part of the deal. Unfortunately, their fortunes took an unexpected turn when the cryptocurrency exchange filed for bankruptcy in November.
Tom Brady’s Urgent Call in Turmoil
Brady reportedly made an urgent phone call to FTX’s head of partnerships, Sina Nader. The gravity of the situation was underscored by the fact that Nader told the NYT that “I would never have expected to turn down a call from Tom Brady.”
However, at that particular moment, Nader found himself embroiled in a crisis meeting along with FTX founder Sam Bankman-Fried and other key personnel. Recognizing the importance of Brady’s call, Nader promptly returned it after the crisis meeting concluded. During their conversation, it became apparent that Brady was deeply “concerned” by the unraveling events surrounding FTX.
A Wreaked Havoc Sports Association
FTX had tangled with numerous prominent sports leagues and athletes, including the renowned duo of Brady and Bündchen. The couple’s involvement with FTX extended well beyond endorsements, as they starred in a colossal $20 million ad campaign, showing their support for the company.
Brady’s connection to FTX became most apparent in his TikTok videos, in which he appears alongside FTX founder Sam Bankman-Fried at the company’s lavish Bahamas headquarters. However, these seemingly thriving connections would soon unravel, plunging both the athletes and the cryptocurrency company into deep crisis.
Recent events have taken a grim turn, as investors launched a class action lawsuit against Bankman-Fried. This legal action named not only Brady and Bündchen, but also other prominent sports figures such as Shaquille O’Neal, Stephen Curry, Trevor Lawrence, Naomi Osaka, David Ortiz and Shohei Ohtani as defendants. Investors are seeking liability for financial losses suffered due to the collapse of the crypto empire.
“None of these defendants performed due diligence before marketing these FTX products to the public,” according to the complaint obtained by the Times. The lawsuit was filed in federal court in Florida.
Before the collapse of FTX, the company was valued at $32 billion, including the $48 million in shares held by Brady and Bündchen, according to the Times. Nowadays, though, it has no value.
The 45-year-old Brady was ranked No. 50 on Forbes’ list of the world’s highest-paid athletes in 2023 with earnings of $45.2 million in football salary and endorsements.
The repercussions have been profound for Bankman-Fried himself, as his net worth plummeted from a staggering $30 billion to just $4 million in the wake of the crash. The founder’s fall from grace took an even more serious turn with the emergence of federal fraud charges, further exacerbating his dire situation.
By Audy Castaneda
