Tom Brady, the legendary former NFL quarterback, was paid a staggering $55 million to appear in commercials for the now-collapsed cryptocurrency exchange FTX. The revelation came from author Michael Lewis, who detailed the deal in his book and subsequent interviews, also disclosing that basketball star Stephen Curry received $35 million for similar endorsements.
The Lucrative Endorsement Deal
According to Lewis, who claims to have seen confidential documents, Brady's three-year contract required him to devote only 20 hours per year—a total of 60 hours over the entire term. This equates to an hourly rate of approximately $920,000. As part of the compensation, Brady received shares of FTX stock. However, shortly before the exchange's abrupt collapse in late 2022, the stock became worthless, resulting in an estimated $30 million loss for Brady.
Lewis described the unusual friendship between Brady and Sam Bankman-Fried (SBF), the founder of FTX: "He really liked Tom Brady. And Sam wasn’t, like, a big sports person, so it was funny to watch that interaction. It was like, ‘These two people actually get along.’ It’s like the class nerd and the quarterback." After the collapse, an angry Brady believed SBF had tricked him into endorsing the exchange, and he wanted nothing more to do with FTX.
Celebrity Endorsements and FTX's Downfall
FTX's aggressive marketing strategy relied heavily on celebrity endorsements to build trust and visibility. Besides Brady and Curry, other stars like Shaquille O'Neal and Naomi Osaka also promoted the platform. Brady's then-wife Gisele Bündchen, who also held FTX stock, saw her net worth drop by $18 million after the collapse.
The failure of FTX has sparked multiple lawsuits against celebrities who promoted the exchange, with plaintiffs arguing that endorsers failed to conduct due diligence or disclose the risks. The U.S. Securities and Exchange Commission (SEC) has investigated the matter, though most celebrities have settled or denied wrongdoing. Brady himself has not faced legal action but has been named in class-action suits.
Broader Implications for Crypto and Sports Marketing
The Tom Brady-FTX saga serves as a cautionary tale about the risks of celebrity endorsements in the volatile crypto industry. It highlights the enormous sums paid to athletes for minimal time commitment, and the lack of regulatory oversight at the time. SBF was convicted on multiple fraud charges and is currently awaiting sentencing, potentially facing decades in prison.
For the sports marketing world, this case has led to stricter endorsement vetting and greater awareness of the potential reputational damage when a sponsor fails. Brady, despite his financial loss, remains one of the most marketable athletes, but the FTX debacle will long be remembered as one of the most infamous sponsorship deals in history.