FTX Group advisers have scrutinized whether they can claw back millions of dollars paid to Shaquille O’Neal, tennis star Naomi Osaka and other professional athletes and teams that promoted Sam Bankman-Fried’s crypto platform before its collapse, Bloomberg News reported. Financial advisers hired by FTX disclosed in court papers that they’ve analyzed if certain payments dished out to athletes before the company unraveled last November can be recovered in chapter 11. Advisers have reviewed payments to O’Neal, Osaka and others to determine if the transfers are subject to rules that permit companies to reverse transactions that occurred just before a chapter 11 filing, according to court documents. While not a complete accounting of FTX’s spending on endorsements, the new disclosures likely offer the fullest glimpse to date into how Bankman-Fried’s empire elevated its profile using the fame of celebrity athletes, Major League Baseball, National Basketball Association teams and Formula 1. Whether FTX advisers believe all of the payments can be recovered, or if any athletes or teams have already offered to return payments, couldn’t be learned. FTX’s disclosures describe many of the transfers to athletes, teams and leagues as prepayments related to advertising or sponsorship deals. FTX cautioned the financial disclosures may not be complete because the company lacked “detailed historical amortization information” and could be further amended in the future. New FTX Chief Executive Officer John J. Ray III said when the company filed chapter 11, the company lacked trustworthy financial information and didn’t keep complete books and records.
