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FTX Bankruptcy: Endeavor, Tom Brady Among Investors Caught In Fallout – Hollywood Reporter

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The equity holders and investors — including Endeavor subsidiary IMG — are likely to be wiped out by FTX’s bankruptcy proceeding.
By Alex Weprin
Media & Business Writer
Fallout from the bankrupt crypto exchange FTX is impacting Hollywood.
Not only have the tens of millions of dollars FTX spent on advertising gone up in smoke (don’t expect this year’s Super Bowl to have the crypto enthusiasm that swept last year’s broadcast), but a new bankruptcy filing shows that a bevy of high-profile people and companies are likely to lose millions in the bankruptcy proceedings.
Among those of interest to Hollywood is Endeavor, the owner of UFC and WME, which owned more than 38,000 shares in FTX through its IMG subsidiary, according to a list of FTX equity holders filed in the bankruptcy proceedings. The shares, which were Series B Preferred shares, suggest that IMG invested in FTX during its 2021 fundraising round which valued the company at $18 billion.

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It is not immediately clear how much IMG invested in FTX (the company was not mentioned in the Series B funding round press release, suggesting it was a small investor), but that investment is now likely worthless.
IMG may have been inspired by FTX’s aggressive sponsorship deals in the sports sector, cutting deals with a wide-range of athletes, arenas, and even leagues (Major League Baseball umpires wore FTX patches on their uniforms last season).
Without question the two most high-profile celebrity endorsers of FTX were NFL star Tom Brady and his then-wife, supermodel Gisele Bundchen (the couple has since announced a separation). According to the list of equity holders, Brady owned more than 1.1 million shares in FTX, while Bundchen owned nearly 700,000.
And New England Patriots owner Robert Kraft, who is the chair of the NFL’s broadcast committee (which negotiates the league’s lucrative TV rights deals), owned nearly 600,000 shares in FTX, and another 45,000 shares in the company’s U.S. subsidiary.
And then there’s Kevin O’Leary, the star of ABC’s Shark Tank, who owned more than 32,000 shares in FTX, and more than 110,000 shares in FTX US. O’Leary told the U.S. Senate Banking Committee last month that the shares he owned in FTX had been valued at approximately $1 million, but he told the committee “I have written them off to zero.”
Using that valuation, Brady and Bundchen’s stake was likely in the 8 figures.
Perhaps more significantly, O’Leary said that his total compensation from FTX was $18 million, including some $10 million in crypto which he held at the platform, and which is now in limbo. If Brady, Bundchen and other endorsers scores deals of a similar scale, they could be facing nine-figure wipeouts.

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