Heat, Miami-Dade County Release Statement on Reports About FTX

With the crash of cryptocurrency exchange FTX, the naming-rights holder for the Heat arena, the franchise and Miami-Dade County released a joint statement on Friday, stating that it would "take action immediately to terminate" its business relationship with FTX.

https://www.si.com/nba/2022/11/12/heat-miami-dade-county-release-statement-on-reports-about-ftx-its-affiliates


Cryptocurrency brand FTX went from $32 billion to bankrupt in just nine days, and the Cal football stadium's $17.5 million naming rights deal is likely to go down the drain with it.

You may have not been following the spectacular flame-out of cryptocurrency exchange FTX, which just filed for bankruptcy Friday morning. But if you're a Cal Bears football fan, or if you have any interest in the financial health of UC Berkeley, you will have some interest in this stunning-to-some, completely predictable to the rest of us crypto downfall. Just 14 months ago, this very crypto company called FTX bought the naming rights to Cal Memorial Stadium for $17.5 million. So… what the heck happens to Cal's stadium now?

https://sfist.com/2022/11/11/crypto-giant-ftxs-massive-implosion-likely-means-curtains-for-cals-17-5-million-stadium-naming-rights-deal/

SoFlaBear said:

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Heat, Miami-Dade County Release Statement on Reports About FTX

With the crash of cryptocurrency exchange FTX, the naming-rights holder for the Heat arena, the franchise and Miami-Dade County released a joint statement on Friday, stating that it would "take action immediately to terminate" its business relationship with FTX.

https://www.si.com/nba/2022/11/12/heat-miami-dade-county-release-statement-on-reports-about-ftx-its-affiliates


Cryptocurrency brand FTX went from $32 billion to bankrupt in just nine days, and the Cal football stadium's $17.5 million naming rights deal is likely to go down the drain with it.

You may have not been following the spectacular flame-out of cryptocurrency exchange FTX, which just filed for bankruptcy Friday morning. But if you're a Cal Bears football fan, or if you have any interest in the financial health of UC Berkeley, you will have some interest in this stunning-to-some, completely predictable to the rest of us crypto downfall. Just 14 months ago, this very crypto company called FTX bought the naming rights to Cal Memorial Stadium for $17.5 million. So… what the heck happens to Cal's stadium now?

https://sfist.com/2022/11/11/crypto-giant-ftxs-massive-implosion-likely-means-curtains-for-cals-17-5-million-stadium-naming-rights-deal/

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The old movie Brewster's Millions is looking so weak and feeble after this FTX fiasco.

Brewster's Millions was one of my favorite movies growing up. Such a classic.

I haven't seen it in decades - I hope it holds up!

The good news is that the economy is the strongest it has ever been. Bay area based companies are absolutely flush with cash to drop on a stadium, and Cal already has 3 wins this season, meaning we have more eyes on our games than at any time in the last 50 years: it's a perfect storm to get top dollar for naming rights.

LunchTime said:

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The good news is that the economy is the strongest it has ever been. Bay area based companies are absolutely flush with cash to drop on a stadium, and Cal already has 3 wins this season, meaning we have more eyes on our games than at any time in the last 50 years: it's a perfect storm to get top dollar for naming rights.

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Well done.

SoFlaBear said:

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Heat, Miami-Dade County Release Statement on Reports About FTX

With the crash of cryptocurrency exchange FTX, the naming-rights holder for the Heat arena, the franchise and Miami-Dade County released a joint statement on Friday, stating that it would "take action immediately to terminate" its business relationship with FTX.

https://www.si.com/nba/2022/11/12/heat-miami-dade-county-release-statement-on-reports-about-ftx-its-affiliates


Cryptocurrency brand FTX went from $32 billion to bankrupt in just nine days, and the Cal football stadium's $17.5 million naming rights deal is likely to go down the drain with it.

You may have not been following the spectacular flame-out of cryptocurrency exchange FTX, which just filed for bankruptcy Friday morning. But if you're a Cal Bears football fan, or if you have any interest in the financial health of UC Berkeley, you will have some interest in this stunning-to-some, completely predictable to the rest of us crypto downfall. Just 14 months ago, this very crypto company called FTX bought the naming rights to Cal Memorial Stadium for $17.5 million. So… what the heck happens to Cal's stadium now?

https://sfist.com/2022/11/11/crypto-giant-ftxs-massive-implosion-likely-means-curtains-for-cals-17-5-million-stadium-naming-rights-deal/

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This article's TITLE, URL and content are all INCORRECT!

FTX does not and never did have "stadium naming rights." It's simply 'field naming rights,' and nothing more.

They could at LEAST get this critical fact straight before devoting their title, universal resources locator, and article content to this incorrect statement before putting proverbial pen to paper!

I know I make mistakes and nobody's perfect, but this is just too much!

PS Funny how this article makes ZERO mention of the fact that the FTX CEO made many, many donations to all sorts of other institutions, politicians and political races. Apparently it's just UC Berkeley that "didn't do its due diligence."

Hyperbole.

I thought we got the FTX $ up front?

New York, Nov 11 (Reuters) - At least $1 billion of customer funds have vanished from collapsed crypto exchange FTX, according to two people familiar with the matter.

The exchange's founder Sam Bankman-Fried secretly transferred $10 billion of customer funds from FTX to Bankman-Fried's trading company Alameda Research, the people told Reuters.

A large portion of that total has since disappeared, they said. One source put the missing amount at about $1.7 billion. The other said the gap was between $1 billion and $2 billion.

https://www.reuters.com/markets/currencies/exclusive-least-1-billion-client-funds-missing-failed-crypto-firm-ftx-sources-2022-11-12/

Apparently Sam Bankhead-Fried and his FTX cronies are under supervision in the Bahamas. It's reported that Alameda CEO Caroline Ellison in Hong Kong. All of the FTX-Alameda lot are apparently trying to get to Dubai to avoid extradition. Man these Furd millennials are in deep doo doo.

https://www.ibtimes.com/sam-bankman-fried-other-ftx-executives-under-supervision-bahamas-report-3635271

Reportedly, Chainanalysis said that $8.6 Billion was laundered using crypto in 2021.
I would imagine that there are some pretty pissed off "gangstas" that will be looking for SBF too.

Crypto-Money Laundering Rose 30% to $8.6 Billion in 2021: Chainalysis (businessinsider.com)

The university should be deeply embarrassed that it advertised for FTX. UC Berkeley should not only immediately terminate the sponsorship, they should apologize to the public for having lent their platform to such a corrupt institution. The University of California is not some random Youtube or Instagram influencer who takes some cash to plug FTX. It is supposed to be a servant of the community dedicated to spreading truth and knowledge.

No one should have handed money to FTX because Cal put their ads on the field and video boards but that's not the point. Advertising on the platforms of reputable institutions lends credibility to what's being advertised. The effect is passive but cumulative with all of the subject's other advertising. Cryptocurrency was been given a massive boost in credibility with all of the advertising pushing crypto on the public through a multitude of channels. People see crypto everywhere in the mainstream and grow more comfortable with the idea by seeming familiarity. Matt Damon is supposed to be embarrassed that he shilled for crypto right before it entered stage 2 of an epic collapse, why shouldn't the world's #1 public university also be?

Of course this deal went through our worthless middleman Learfield, but that doesn't mitigate Cal's responsibility. Don't allow any person or company to advertise on Cal's platform unless you're proud to share a stage with them.

Just to clarify....

Crypto wasnt the bad guy here.

It was Sam Bankman-Fried who ran a sister company that was a crypto hedge-fund called Alameda Research that took massive LEVERAGED POSITIONS and used customer accounts at FTX as collateral to finance/leverage those positions.

The FTX customer accounts (like all brokerage accounts) are supposed to be segregated.

Not to be used or connected in any way outside of the named account holder.

The term that sticks with me is "80% hype and 20% utopian exuberance".

MilleniaBear said:

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I thought we got the FTX $ up front?

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That would have been smart. But if the name comes off, does the money go back (pro-rata, of course)?

DiabloWags said:

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Just to clarify....

Crypto wasnt the bad guy here.

It was Sam Bankman-Fried who ran a sister company that was a crypto hedge-fund called Alameda Research that took massive LEVERAGED POSITIONS and used customer accounts at FTX as collateral to finance/leverage those positions.

The FTX customer accounts (like all brokerage accounts) are supposed to be segregated.

Not to be used or connected in any way outside of the named account holder.

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Weird that it keeps happening over and over in crypto though.

Must be bad luck.

maxer said:

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DiabloWags said:

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Just to clarify....

Crypto wasnt the bad guy here.

It was Sam Bankman-Fried who ran a sister company that was a crypto hedge-fund called Alameda Research that took massive LEVERAGED POSITIONS and used customer accounts at FTX as collateral to finance/leverage those positions.

The FTX customer accounts (like all brokerage accounts) are supposed to be segregated.

Not to be used or connected in any way outside of the named account holder.

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Weird that it keeps happening over and over in crypto though.

Must be bad luck.

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That's False.

kal kommie said:

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The university should be deeply embarrassed that it advertised for FTX. UC Berkeley should not only immediately terminate the sponsorship, they should apologize to the public for having lent their platform to such a corrupt institution. The University of California is not some random Youtube or Instagram influencer who takes some cash to plug FTX. It is supposed to be a servant of the community dedicated to spreading truth and knowledge.

No one should have handed money to FTX because Cal put their ads on the field and video boards but that's not the point. Advertising on the platforms of reputable institutions lends credibility to what's being advertised. The effect is passive but cumulative with all of the subject's other advertising. Cryptocurrency was been given a massive boost in credibility with all of the advertising pushing crypto on the public through a multitude of channels. People see crypto everywhere in the mainstream and grow more comfortable with the idea by seeming familiarity. Matt Damon is supposed to be embarrassed that he shilled for crypto right before it entered stage 2 of an epic collapse, why shouldn't the world's #1 public university also be?

Of course this deal went through our worthless middleman Learfield, but that doesn't mitigate Cal's responsibility. Don't allow any person or company to advertise on Cal's platform unless you're proud to share a stage with them.

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Seriously? That's your take from this? FTX advertised/sponsored EVERYWHERE, including on an NBA arena, with Mercedes, MLB and with all sorts of other reputable businesses (not to mention all manner of political donations to Biden and others). Cal was selling advertising, not endorsing a product. By your logic, no team should accept advertising or sponsorships from sports betting, alcohol companies, or arguably even banks.

Cal should terminate the FTX relationship and it has been slow to do so - FTX is still on the Cal sports website. I attribute that to typical UC bureaucracy and perhaps lawyers being overly cautious. But this episode has almost nothing to do with Cal .

A complete failure

"This situation is unprecedented," said John J. Ray III, who helped manage Enron after its collapse in an accounting fraud scandal in 2001.

BearGoggles said:

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kal kommie said:

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The university should be deeply embarrassed that it advertised for FTX. UC Berkeley should not only immediately terminate the sponsorship, they should apologize to the public for having lent their platform to such a corrupt institution. The University of California is not some random Youtube or Instagram influencer who takes some cash to plug FTX. It is supposed to be a servant of the community dedicated to spreading truth and knowledge.

No one should have handed money to FTX because Cal put their ads on the field and video boards but that's not the point. Advertising on the platforms of reputable institutions lends credibility to what's being advertised. The effect is passive but cumulative with all of the subject's other advertising. Cryptocurrency was been given a massive boost in credibility with all of the advertising pushing crypto on the public through a multitude of channels. People see crypto everywhere in the mainstream and grow more comfortable with the idea by seeming familiarity. Matt Damon is supposed to be embarrassed that he shilled for crypto right before it entered stage 2 of an epic collapse, why shouldn't the world's #1 public university also be?

Of course this deal went through our worthless middleman Learfield, but that doesn't mitigate Cal's responsibility. Don't allow any person or company to advertise on Cal's platform unless you're proud to share a stage with them.

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Seriously? That's your take from this? FTX advertised/sponsored EVERYWHERE, including on an NBA arena, with Mercedes, MLB and with all sorts of other reputable businesses (not to mention all manner of political donations to Biden and others). Cal was selling advertising, not endorsing a product. By your logic, no team should accept advertising or sponsorships from sports betting, alcohol companies, or arguably even banks.

Cal should terminate the FTX relationship and it has been slow to do so - FTX is still on the Cal sports website. I attribute that to typical UC bureaucracy and perhaps lawyers being overly cautious. But this episode has almost nothing to do with Cal .

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Have they paid up front? Is there a moral's clause in the contract? Even then, don't they have to get bankruptcy court approval to terminate an executory contract? The optics suck for everyone that had FTC as a sponsor, but I'm having a tough time blaming Cal's administration in any of this.

Just as a guess:

If, as reported, FTX paid Learfield in crypto, and Learfield then paid Cal in actual US dollars, then maybe Cal has effectively sold these naming rights to Learfield, and it's up to Learfield to find a replacement sponsor so that Learfield can recoup what they've already agreed to pay Cal.

Bobodeluxe said:

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A complete failure

"This situation is unprecedented," said John J. Ray III, who helped manage Enron after its collapse in an accounting fraud scandal in 2001.

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Perhaps you should include the ENTIRE quote by John Ray to provide context.

He's speaking about inexperienced, unsophisticated, and potentially compromised individuals having such a concentration of control. He's not speaking to the fundamental driver of this bankruptcy, which was how leveraged positions at a hedge-fund (Alameda) were being financed by customer accounts from a brokerage firm (FTX).

The bottom line is that this is NOT the first time that customer accounts at a brokerage firm were NOT SEGREGATED and used improperly. Given some of your posts, it doesnt sound like you really understand what happened in this case.

The last time this happened was with MF Global, a commodities brokerage that used $891 million in customer funds in 2011 to shore up liquidity issues in their broker-dealer account and cover losses created by trading losses, primarily in Sovereign Debt.

MF Global - Wikipedia

He did THAT, too?

"In the wake of the cryptocurrency exchange FTX's spectacular implosion, a lot of unseemly details about co-founder Sam Bankman-Fried have been revealedones that never appeared in the many, many examples of adoring coverage of the onetime crypto boy wonder in recent years. It's all fallen in tandem with reports on how his business was just a tad sketchier than it seemed: reporting essentially valueless coins as actual assets, using billions of dollars in FTX customer deposits to prop up his other crypto business, and neglecting proper financial disclosures."

wifeisafurd said:

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BearGoggles said:

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kal kommie said:

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The university should be deeply embarrassed that it advertised for FTX. UC Berkeley should not only immediately terminate the sponsorship, they should apologize to the public for having lent their platform to such a corrupt institution. The University of California is not some random Youtube or Instagram influencer who takes some cash to plug FTX. It is supposed to be a servant of the community dedicated to spreading truth and knowledge.

No one should have handed money to FTX because Cal put their ads on the field and video boards but that's not the point. Advertising on the platforms of reputable institutions lends credibility to what's being advertised. The effect is passive but cumulative with all of the subject's other advertising. Cryptocurrency was been given a massive boost in credibility with all of the advertising pushing crypto on the public through a multitude of channels. People see crypto everywhere in the mainstream and grow more comfortable with the idea by seeming familiarity. Matt Damon is supposed to be embarrassed that he shilled for crypto right before it entered stage 2 of an epic collapse, why shouldn't the world's #1 public university also be?

Of course this deal went through our worthless middleman Learfield, but that doesn't mitigate Cal's responsibility. Don't allow any person or company to advertise on Cal's platform unless you're proud to share a stage with them.

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Seriously? That's your take from this? FTX advertised/sponsored EVERYWHERE, including on an NBA arena, with Mercedes, MLB and with all sorts of other reputable businesses (not to mention all manner of political donations to Biden and others). Cal was selling advertising, not endorsing a product. By your logic, no team should accept advertising or sponsorships from sports betting, alcohol companies, or arguably even banks.

Cal should terminate the FTX relationship and it has been slow to do so - FTX is still on the Cal sports website. I attribute that to typical UC bureaucracy and perhaps lawyers being overly cautious. But this episode has almost nothing to do with Cal .

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Have they paid up front? Is there a moral's clause in the contract? Even then, don't they have to get bankruptcy court approval to terminate an executory contract? The optics suck for everyone that had FTC as a sponsor, but I'm having a tough time blaming Cal's administration in any of this.

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This likely isn't an executory contract. Generally, an executory contract is one where one or both parties in an agreement still has to do something (at the time the petition was filed). That something would have to be more than just making payments. This case is more like a lease agreement where Cal essentially leased the right to name the field at Memorial Stadium in exchange for FTX agreeing to pay money (on a recurring basis?).

Still, as I mentioned in the other thread about FTX, it's likely better for Cal not to take any actions directly related to terminating the agreement (even if there is a bankruptcy-triggering early termination clause). Instead, Cal's attorneys should move to file relief from stay with the BK court, first*. Once relief from stay is granted, Cal should immediately terminate the agreement.

*In addition to filing a claim for any amount owed to Cal, of course.

wifeisafurd said:

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BearGoggles said:

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kal kommie said:

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The university should be deeply embarrassed that it advertised for FTX. UC Berkeley should not only immediately terminate the sponsorship, they should apologize to the public for having lent their platform to such a corrupt institution. The University of California is not some random Youtube or Instagram influencer who takes some cash to plug FTX. It is supposed to be a servant of the community dedicated to spreading truth and knowledge.

No one should have handed money to FTX because Cal put their ads on the field and video boards but that's not the point. Advertising on the platforms of reputable institutions lends credibility to what's being advertised. The effect is passive but cumulative with all of the subject's other advertising. Cryptocurrency was been given a massive boost in credibility with all of the advertising pushing crypto on the public through a multitude of channels. People see crypto everywhere in the mainstream and grow more comfortable with the idea by seeming familiarity. Matt Damon is supposed to be embarrassed that he shilled for crypto right before it entered stage 2 of an epic collapse, why shouldn't the world's #1 public university also be?

Of course this deal went through our worthless middleman Learfield, but that doesn't mitigate Cal's responsibility. Don't allow any person or company to advertise on Cal's platform unless you're proud to share a stage with them.

---

Seriously? That's your take from this? FTX advertised/sponsored EVERYWHERE, including on an NBA arena, with Mercedes, MLB and with all sorts of other reputable businesses (not to mention all manner of political donations to Biden and others). Cal was selling advertising, not endorsing a product. By your logic, no team should accept advertising or sponsorships from sports betting, alcohol companies, or arguably even banks.

Cal should terminate the FTX relationship and it has been slow to do so - FTX is still on the Cal sports website. I attribute that to typical UC bureaucracy and perhaps lawyers being overly cautious. But this episode has almost nothing to do with Cal .

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Have they paid up front? Is there a moral's clause in the contract? Even then, don't they have to get bankruptcy court approval to terminate an executory contract? The optics suck for everyone that had FTC as a sponsor, but I'm having a tough time blaming Cal's administration in any of this.

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That was my point. My general understanding of BK is: (i) with limited exceptions (if any), creditors can't take adverse actions w/o court approval (and terminating a naming contract would be adverse IMO); and (ii) the debtor has time to accept/reject executory contracts (which the naming rights contract likely is). Not much Cal can do in the short run.

Cal has cancelled the naming rights Agreement with FTX.

https://www.pymnts.com/cryptocurrency/2022/uc-berkeley-cancels-ftx-stadium-naming-partnership/

DiabloWags said:

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Cal has cancelled the naming rights Agreement with FTX.

https://www.pymnts.com/cryptocurrency/2022/uc-berkeley-cancels-ftx-stadium-naming-partnership/

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The article you linked said the deal is suspended, not terminated. There's a bit of difference there, but that difference is legally significant even if it means little to fans.

The UC Berkeley Bears have announced a eleven year field naming contract with Elizabeth Holmes.

Turns out, two Stanford Faculty Members helped keep Sam Bankman-Fried out of Jail.

Larry Kramer and Andreas Paepcke signed on as guarantors of the $250 million bail package.
Kramer said he signed the bond due to friendship and family.

The names were unsealed today by a NY federal judge.

Kramer had served as Stanford Law School dean from 2004 to 2012 and put up $500,000
Paepcke is a computer scientist who has also been a consultant to HP and XRX.

Full story below in the free Bloomberg link provided.

NEW: Disgraced FTX founder Sam Bankman-Fried's bond was co-signed by two Stanford University academics, unredacted court filings reveal.

- Larry Kramer, dean emeritus of Stanford Law School, signed for $500,000

- Andreas Paepcke, senior research scientist, signed for $200,000 pic.twitter.com/uCuQpaV8Og

— Stephanie Murray (@stephanie_murr) February 15, 2023

https://www.bloomberg.com/news/articles/2023-02-15/bankman-fried-bail-guarantors-are-stanford-faculty-members?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTY3NjUwMzY5OCwiZXhwIjoxNjc3MTA4NDk4LCJhcnRpY2xlSWQiOiJSUTRYRzBEV1JHRzAwMSIsImJjb25uZWN0SWQiOiI0QTE0NjgyRTVEQjI0RDgyOEVGOTIxMzA1M0U4NzhDMiJ9.h5rSjmCaXFd2FwIbWpJT2J8CwFiWNExeLhHgoH1Z_o4