Taylor Swift initially agreed to a sponsorship deal with FTX, a failed cryptocurrency exchange, before it was unexpectedly rejected by the former CEO, Sam Bankman-Fried. This contradicts Swift’s previous claims that she backed out of the deal due to her own business savvy. According to The New York Times, Swift’s representatives and FTX had been negotiating a tour sponsorship agreement worth potentially $100 million. After six months of discussions, Swift’s team signed the sponsorship agreement. However, Bankman-Fried, who was initially eager to work with Swift, ultimately decided to cancel the deal. This decision by Bankman-Fried left Swift’s representatives frustrated. It’s important to note that Bankman-Fried declined to comment on the matter, and Swift’s representatives have yet to respond to requests for comment.
The Times report challenges the earlier narrative that it was Swift who declined to endorse FTX after conducting her own investigation into the company. FTX faced significant challenges last November when it was discovered that customer funds were used to cover risky bets made by sister hedge fund, Alameda Research. An anonymous source familiar with the situation revealed that FTX wanted Swift to endorse them through commercials, interviews, and promotional events, similar to other celebrities at the time. However, Swift did not agree to endorse FTX, leading negotiations to focus on a tour sponsorship deal, which ultimately fell through.
This development sheds light on a previous report by the Financial Times, which stated that some of Bankman-Fried’s close associates urged him to abandon talks with Swift due to the high cost involved. Despite this, Bankman-Fried supported the endorsement deal, with one of his senior executives, Claire Watanabe, leading the efforts. However, the source cited in the Financial Times article made it clear that Swift did not agree to any endorsement deal, and the discussions were centered around a potential tour sponsorship.
Swift, whose highly anticipated Eras Tour is projected to generate a record-breaking $1 billion, appears to have avoided a potentially damaging association. Other celebrities, such as Tom Brady, Gisele Bündchen, Larry David, and Shaquille O’Neal, who partnered with FTX are currently facing lawsuits accusing them of misleading retail investors. According to The Times, Brady lost around $30 million and Bündchen lost $18 million. FTX’s downfall last year stemmed from allegations that Bankman-Fried misused customer funds to cover losses incurred by his hedge fund, Alameda Research.
Bankman-Fried is currently facing federal fraud charges and stands accused of defrauding investors and embezzling FTX customer deposits. He has pleaded not guilty to these charges and is awaiting trial under strict constraints at his parents’ home in Palo Alto, California. His $250 million personal recognizance bond limits his online communications and financial transactions.
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