FTX examines recovering millions of dollars paid to athletes and teams.
Payments to athletes like Shaquille O’Neal and Naomi Osaka are under scrutiny.
The report revealed specific payments to Major League Baseball and Formula 1 partnerships.
According to a recent report by Bloomberg, financial advisers working on behalf of FTX Group are examining the possibility of recovering millions of dollars in payments made to prominent figures in various professional athletes and teams.
The report noted that the payments were made as part of promotional agreements with FTX founder Sam Bankman-Fried before it collapsed in November last year.
Notably, the FTX financial advisers disclosed their scrutiny of the payments in court documents. They analyze whether these transfers could be clawed back under the provisions of Chapter 11 bankruptcy rules that allow companies to reverse transactions just before a bankruptcy filing.
While the report does not provide a breakdown of FTX’s spending on endorsements, it disclosed how FTX leveraged the star power of celebrity athletes for marketing purposes. It included celebrities from Major League Baseball, National Basketball A…
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