Posted on 07/07/2023 2:25:10 PM PDT by nickcarraway
The FTX stock Brady reportedly received to endorse the company is now worthless
Earlier this year, it was reported that NFL legend Tom Brady among other high-profile investors were set to see their FTX shares become worthless following the company going bankrupt. According to a new report from the New York Times, we now know more details concerning the fallout.
Brady received $30 million -- almost entirely in FTX stock -- for his services in promoting the company, per the Times. Those shares are now worthless. Additionally, Brady is being sued by FTX customers after the company went under. Former CEO Sam Bankman-Fried was charged with several financial crimes, according to CBS News.
The Times also reported that Brady made an "urgent phone call" to FTX executive Sina Nader, who headed the company's partnerships, in the midst of the FTX collapse. That call went unanswered at the time.
"I never would've expected to decline a call from Tom Brady," Nader told the Times.
Later, Nader did return that call, and he was met with worry from the seven-time Super Bowl winner.
"He was concerned," Nader said. "The very first thing he asked me was, 'Sina, how are you doing? I know you put your heart and soul into this.'"
Brady is hardly the only celebrity who found themselves caught up in the FTX disaster. His ex-wife, Gisele Bundchen, received $18 million in stock and is being sued as well. Other endorsers tied to the company include Shaquille O'Neal, Stephen Curry and Naomi Osaka.
The lawsuits are bogus. Brady himself lost money, so he didn’t profit off of these people’s losses. He was an exceptional NFL quarterback. That doesn’t make him a financial wiz. That goes for Shaquille, Giselle, and most of the rest.
Nobody’s suing the politicians who took money though, right?
at the end of the day, they only lost their time, not money, and maybe some damage to their brand, but I doubt it. The lawsuit part is worrisome, but I don’t think it has any legs, unless someone got on their and said I guarantee you this investment is safe and will pay off. Most investments like that have a long disclaimer that investing is risky, and the investor knows full well he could lose his entire investment. So in the end, these guys did not really get hurt.
He lost money perhaps twice. First, he wasted an endorsement for $30 million in worthless paper. Next, he may have to pay taxes on that $30 million because that was the value at the time. But the next year, he can endorse something else and write off the loss.
Maybe though, he could argue the $30 million was fraudulent and never received, so he can avoid the taxable income.
Actor Benjamin McKenzie (Gotham, the OC) has spoken out against crypto and even testified to the Senate about it.
Taking the stock wasn’t the mistake.
Taking the stock and holding it was the mistake. If they sold half of it and let the rest roll, they would have been very happy.
Greed kills a lot of good stock holders.
One word...diversify.
Taylor Swift’s father works (worked?) on Wall Street - he simply advised her to ask: “are these securities registered with the SEC?”
When the answer was NO - it revealed it would be a legal minefield.
I believe all these others imagined that wasn’t relevant because FTX was incorporated in Antigua and Barbuda, and headquartered in Bahamas - even though they were seeking investment from US persons, in the USA.
They did promote it to their fans.
I don’t know, but I hope so.
I don’t know how much they could lose in the lawsuit, but it will be a headache, and probably generate legal fees.
So, you think Taylor Swift would have made money if she took the $100 million? I know in the Bernie Madoff case, people who cashed out had that money clawed back.
Technically, Brady did not lose “money”.
He was paid for his services in agreed upon stocks in the company.
It just that the stocks now have no value.
Correct. Perhaps I should have said he did not make any money (therefore, he did not benefit from their loss).
He was paid $10M in worthless stock to hype a trash stock that rose to $30M, then crashed to $0. He didn’t lose or gain anything for his ill-informed sales pitch.
If you see Brady in a Raiders uniform this year, you’ll know why.
Brady’s portfolio deflated?
Do you know he didn’t buy any himself? He still has to answer the lawsuit. And there could be tax implications.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.