FTX founder Sam Bankman-Fried is close to signing a $100 million deal to sponsor Taylor Swift’s upcoming concert tour, according to a report.
Bankman-Fried’s cryptocurrency exchange was in the final stages of negotiations with the Swift team to sell tickets that include digital certificates, or NFTs. According to the Financial Times.
FTX reportedly wanted Swift to offer a “light level of endorsement” on social media. However, the singer never took it seriously, reports the FT.
“Taylor did not agree and disagree with the endorsement deal,” a source told the FT. “The discussion was about a potential tour sponsorship that didn’t happen.”
The negotiations have sparked fierce internal resistance among senior FTX officials, who see it as too expensive. But Bankman-Fried was pressured because she was a “Ty Ty fan,” according to an FTX employee.
Bankman-Fried has backed an endorsement deal brokered by one of its senior executives, Claire Watanabe, the FT reported.
But many of the experienced hands that Bankman-Fried hired to help the marketing department felt that the price tag was too steep and that such a deal would not bring value to the company.
“Nobody liked the deal,” a person familiar with the negotiations told the FT. “It was very expensive to begin with.”
A source quoted by the FT said the price was “too high … really too high”.
“It’s the front end of football jersey cost.”
Negotiations began in the fall of 2021, but earlier this year — months before FTX filed for Chapter 11 bankruptcy protection and Bankman-Fried stepped down as CEO.
In March, Swift will embark on the Eras Tour in support of her new album Midnights. The demand for tickets to his concerts was so high that he overwhelmed the Ticketmaster servers and left fans. waited for hours to buy a ducat.
FTX exploded when it was revealed that the exchange was using client funds to cover risky bets made by Alameda Research, an analytical firm founded by Bankman-Fried.
Bankman-Fried has denied allegations that she misused client money. According to him, the company’s downfall was caused by management mistakes.
Swift’s pursuit of sponsorship underscored Bankman-Fried’s desire for celebrity endorsements for her company.
FTX has counted Super Bowl winner Tom Brady, his supermodel ex-wife Gisele Bündchen, “Curb Your Enthusiasm” star Larry David, tennis champion Naomi Osaka, retired NBA legend Shaquille O’Neal and more as celebrity supporters.
In the wake of FTX’s spectacular collapse, several lawsuits have been filed against high-profile figures accused of defrauding retail investors.
Bankman-Fried’s pursuit of spectacular endorsement deals includes a 19-year, $135 million deal for the naming rights to the arena that hosts the Miami Heat basketball team.
Miami-Dade County, which owns the arena, now wants to remove the name.
Since Bankman-Fried’s fall from grace, several reports have surfaced of his wasteful management of the company.
FTX reportedly spent hundreds of millions of dollars buying up properties in the Bahamas, including a $16 million home listed under the name of Bankman-Fried’s parents.
FTX’s top management was also given great perks like free bi-weekly massages, DoorDash grocery delivery credits, private jet Amazon deliveries and other perks.
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