Former NFL quarterback Tom Brady received $55 million for endorsing FTX before its collapse, losing $30 million post-collapse; a cautionary tale about celebrity endorsements in crypto.
Highlighting Points
- Tom Brady received a staggering $55 million for FTX commercials before its downfall.
- Both Brady and Stephen Curry reportedly made lucrative deals for FTX promotions.
- Post-collapse, Brady is believed to have incurred a $30 million loss.
- Micheal Lewis reveals Brady’s dissatisfaction, believing he was deceived by Sam Bankman-Fried (SBF).
In a perplexing intersection of celebrity endorsements and cryptocurrency meltdowns, former NFL quarterback Tom Brady secured a hefty sum of $55 million for his promotional involvement with the now-collapsed crypto exchange, FTX. The endorsement deal mandated Brady to dedicate 20 hours annually for three years to the advertisement campaigns.
FTX Fallout: Tom Brady’s $55M Deal Revealed
Brady was reportedly paid $55 million by Sam Bankman-Fried for roughly a week’s worth of work spread over three years. The revelations come from Michael Lewis, author of “Going Infinite: The Rise and Fall of a New Tycoon,” in his… pic.twitter.com/G09VmNI10Y
— Crypto Town Hall (@Crypto_TownHall) October 4, 2023
Tom Brady Revealations
The revelations were brought to light by author Micheal Lewis, who alleged to have accessed confidential documents affirming his statements. He unveiled not only the particulars of Brady’s deal but also highlighted the promotional collaboration with NBA star Stephen Curry, which was inked at $35 million.
While both sports icons received ample payments in FTX stock for their promotional efforts, the subsequent demise of FTX slashed their net worth significantly. Brady reportedly lost $30 million, while his then-wife, Gisele Bündchen, witnessed an $18 million depreciation in her net worth due to the FTX stock evaporation.
Lewis provided further insights into the relationship between Brady and FTX’s founder, Sam Bankman-Fried (SBF). Despite their contrasting backgrounds, with SBF not being “a big sports person” and Brady being the epitome of a sports figure, Lewis noted a burgeoning friendship between the two. He observed, “It was like, ‘These two people actually get along.’ It’s like the class nerd and the quarterback.”
However, the unraveling of FTX and its catastrophic collapse in late 2022 fostered a wave of bitterness and betrayal, particularly from Brady. The iconic quarterback, as per Lewis, felt duped by SBF into endorsing FTX and, following its downfall, wanted nothing further to do with it.
Concluding Thoughts
This incident places a spotlight on the perilous interface between celebrity endorsements and volatile market entities like cryptocurrency exchanges. The collapse of FTX, juxtaposed against the massive payouts to celebrities for endorsements, raises essential questions about the efficacy and ethics of utilizing influential figures to promote potentially risky investment platforms.
While the high-profile endorsements from the likes of Brady and Curry undoubtedly offered immense promotional value to FTX prior to its collapse, the subsequent fallout illustrates a stark warning about the inherent risks involved, not only for investors but also for the endorsing celebrities themselves. This incident may likely stir conversations around transparency, responsibility, and accountability in celebrity endorsements within the crypto sphere, especially given its notorious volatility and the large retail investor involvement.
