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Tom Brady Lost Almost $30 Million in FTX Stock, Made Urgent Call to Company During Fallout, Per Report
CBS Sport ^ | 7/7 | Jordan Dajani

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.


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A lot of celebrities lost money on this. Apparently, Taylor Swift is the smartest celebrity, because she turned down $100 million that FTX offered her, and missed out on the lawsuits and other fun. That makes her smarter than Kevin O'Leary, a self-proclaimed money expert, who got caught up in it.
1 posted on 07/07/2023 2:25:10 PM PDT by nickcarraway
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To: nickcarraway

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.


2 posted on 07/07/2023 2:28:37 PM PDT by Dr. Sivana ("If you can’t say something nice . . . say the Rosary." [Red Badger])
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To: nickcarraway

Nobody’s suing the politicians who took money though, right?


3 posted on 07/07/2023 2:29:10 PM PDT by monkeyshine (live and let live is dead)
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To: nickcarraway

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.


4 posted on 07/07/2023 2:30:35 PM PDT by job
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To: Dr. Sivana

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.


5 posted on 07/07/2023 2:31:05 PM PDT by monkeyshine (live and let live is dead)
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To: nickcarraway

Actor Benjamin McKenzie (Gotham, the OC) has spoken out against crypto and even testified to the Senate about it.


6 posted on 07/07/2023 2:31:31 PM PDT by Extremely Extreme Extremist
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To: nickcarraway

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.


7 posted on 07/07/2023 2:34:37 PM PDT by Vermont Lt
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To: Dr. Sivana

One word...diversify.


8 posted on 07/07/2023 2:37:44 PM PDT by joma89 (Buy weapons and ammo, folks, and have the will to use them.)
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To: nickcarraway

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.


9 posted on 07/07/2023 2:41:27 PM PDT by PGR88
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To: Dr. Sivana

They did promote it to their fans.


10 posted on 07/07/2023 2:41:40 PM PDT by nickcarraway
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To: monkeyshine

I don’t know, but I hope so.


11 posted on 07/07/2023 2:41:57 PM PDT by nickcarraway
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To: job

I don’t know how much they could lose in the lawsuit, but it will be a headache, and probably generate legal fees.


12 posted on 07/07/2023 2:42:56 PM PDT by nickcarraway
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To: Vermont Lt

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.


13 posted on 07/07/2023 2:44:27 PM PDT by nickcarraway
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To: Dr. Sivana
>>Brady himself lost money

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.

14 posted on 07/07/2023 2:45:00 PM PDT by Deaf Smith (When a Texan takes his chances, chances will be taken that's for sure.)
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To: Deaf Smith

Correct. Perhaps I should have said he did not make any money (therefore, he did not benefit from their loss).


15 posted on 07/07/2023 2:46:57 PM PDT by Dr. Sivana ("If you can’t say something nice . . . say the Rosary." [Red Badger])
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To: nickcarraway

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.


16 posted on 07/07/2023 2:47:39 PM PDT by alternatives?
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To: nickcarraway

If you see Brady in a Raiders uniform this year, you’ll know why.


17 posted on 07/07/2023 2:48:29 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: nickcarraway
They did promote it to their fans.

Yeah, and if I bought a Plymouth because Tina Turner likes them, and it was a piece of junk and the brand went away a short time later. I dodn't sue Tina Turner, even though she was paid cash for her endorsement. Tina doesn't know cars, Tom doesn't know blockchain currency.
18 posted on 07/07/2023 2:50:59 PM PDT by Dr. Sivana ("If you can’t say something nice . . . say the Rosary." [Red Badger])
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To: nickcarraway

Brady’s portfolio deflated?


19 posted on 07/07/2023 3:09:15 PM PDT by MeganC (There is nothing feminine about feminism. )
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To: alternatives?

Do you know he didn’t buy any himself? He still has to answer the lawsuit. And there could be tax implications.


20 posted on 07/07/2023 3:12:48 PM PDT by nickcarraway
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