Mercedes F1 team cancels FTX deal amid company meltdown

the summary

  • F1 Team Mercedes-AMG Petronas said today that it has concluded its sponsorship deal with cryptocurrency exchange FTX.
  • FTX filed for bankruptcy protection today, days after admitting a liquidity crunch and trying to get Binance to acquire it.

Cryptocurrency exchange FTX Spent heavily on sports sponsorshipAnd we begin to see the repercussions of these deals as the company collapses in the midst of a liquidity crunch. Today, the popular Formula 1 team Mercedes-AMG Petronas said it is ending its FTX sponsorship deal.

Early this morning, before FTX announced Chapter 11 bankruptcy fileA spokesperson for the Petronas-Mercedes-AMG team said: The Wall Street Journal It said it would pause the deal as a “first step” as it assesses the fallout from the FTX breakup.

The team will remove the FTX badge from its car at this weekend’s Sao Paulo Grand Prix in Brazil. The team said Thursday that it intends to do so brand preservation The weekend for the penultimate race of the season. Today it changed course.

“The company will no longer appear on our race cars and other brand assets starting this weekend,” a team spokesperson said. “We will continue to monitor the situation closely as it develops,” he added.

FTX removed from partner page at Team siteThe previous link highlighting the FTX deal is now down. However, the exchange’s logo is still displayed at the bottom of the site at press time. Decrypt I contacted a team spokesperson to clarify their plans regarding the FTX deal but they did not respond immediately.

Mercedes-AMG Petronas Signed FTX Agreement In September 2021 in the midst of what would become the eighth consecutive world championship for the team to collect the most points of the season. Terms of the sponsorship deal were not disclosed.

In May, FTX launched the NFT initiative with Mercedes-AMG Petronas around the Miami Grand Prix. The stock exchange offered itself for free Solana– NFT-based ‘Ticket Stub’ collectibles that fans can claim at this race and others this season, as well as Auctioned Ethereum NFTs Linked to artwork by the artist under the pseudonym Mad Dog Jones. Two NFTs brought in a portion of the private cars driven by Lewis Hamilton and George Russell in Miami.

The Mercedes alliance was entered into amid a host of sports sponsorship deals for the then-growing stock market, including deals with Major League BaseballThe Miami HeatThe Golden State Warriorsand esports club SoloMid . Team. stars like athletes Tom BradyAnd the steve curryAnd the Naomi Osaka He also signed off on agreeing to exchange in exchange for equity in the startup.

But everything is falling apart this week amid news that FTX does not have enough liquid assets to cover its debt, and may have Mismanagement of client money on their activities. Rival exchange Binance said on Tuesday it had done so Sign a non-binding letter of intent To get FTX, but that Changed course on Wednesday Citing how messy she discovered.

On Thursday, FTX founder and CEO Sam Bankman-Fried said he would instead Try to collect money To save the company and make users complete again. But this morning, FTX File for voluntary Chapter 11 bankruptcy protection In the US, Bankman-Fried is stepping down as CEO as the company takes its next step forward.

FTX is one of several cryptocurrency makers that have funneled sponsorship funds into Formula 1. rival platform Crypto.com. He sponsored the racing league itself 2021 in a five-year deal estimated at $100 million, while the blockchain platform Tezos sponsored team McLaren The NFT Open Market Recently linked to Haas.

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