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.
It is am intriguing legal angle, though. When is one endorsing as a mere "actor" vs. one "with knowledge or experience?"
I am really waiting to see how the Dave Ramsey lawsuit plays out, for example.
He can afford it, but isn’t is nice to know the Bimafia cut him loose?
He can write off his losses completely over time. Your tax laws allow you to siphon your losses over time until they’ve been completely absorbed.
Too bad so sad that’s what you get for endorsing crap
Well if it was categorized as income, I think the write-off limit is $3000 a year so it will take 10,000 years. If it was a capital loss, he could write it off faster.
I guess he could probably argue it was fraud and not count it as income. Or, if he planned it right from the start it was never income and was instead an investment which he could then write off as a capital loss.
From what I read he received it for services rendered.
You could sue him for providing bad advice. I would think it would be difficult to win this since he is primarily a football player.
Not sure the tax implications by year, or type, but his overall income looks like zero.
It may depend on how he categorized it. Trump managed to write off his billion dollar loss on his Atlantic casinos, so there may be a way around that.
I don’t know the details of Trump’s casino write off but I would guess that it was a capital investment in a business enterprise that went bad, so he (through whatever vehicle(s) he used to make the investment) could write it off against capital gains. Could be several entities or pass through entities that made the investment, and thus could write it off.
Trump also bankrupted a few businesses. All legal. It happens. That’s capitalism.
Libs always fall for these schemes. Most of Bernie Madoff’s clients were wealthy libs.
No wonder they love Social Security.
Many of the Trump properties were not his. They paid to use his name.
It was in stock. Madoff’s was all cash.
If she took the deal, sold half…and continued to sell as it went up…she would have been OK.
In the end, all of these folks will take a loss against any gains for several years to come. None of them are going broke.
I wasn’t criticizing Trump for his bankruptcies. He’s had only 7 vs 519 (or something) functional businesses. I was only stating that Trump stretched his losses over the last 40 years and it totalled at least a billion dollars.
I have no criticism about anybody who takes chances, even when it doesn’t work out for them.
Crypto is a money laundering scam, every single ounce of it .
How can you launder money with crypto, when it has blockchain logs that keep track of everything. It seems like the worst way to launder money.
Well oversimplification but basically , front organization buys crypto with illicit funds then spends or sells it, money laundered.
You think these crypto houses are following KYC and AML laws like normal investment banks do?
Not a chance in hell. You can’t ask for a better product for fraud and money laundering than Crypto
Brady didn’t lose any money. He just wasn’t paid what he thought for his endorsements. If any of the plaintiffs in the lawsuits against him prevail, though, he will lose money.
Better than cash?
Do you know for a fact he didn’t invest any of his own money, and he won’t lose any money from the legal fees.
I’ll be happy to endorse them next week for a million in cash.
“Don’t trust the government or the media. I’ve never lost a cent on FTX stock”
They are worth about $750 million. Tom by himself is worth at least $300 million (yes, Gisele is worth more than Tom). Plus Tom has a broadcasting contract worth a guaranteed $375 million over the next 10 years.
One can gloat about him losing $30 million but apparently he will have the last laugh. Especially if Giselle is forced to pay him alimony on top of all that he still has left.
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