A consortium of investors has sued the founder of FTX — along with several high-profile athletes who promoted the cryptocurrency exchange — alleging they took “advantage of unsophisticated investors from across the country.” 

Included in the class-action suit are FTX founder Sam Bankman-Fried, in addition to seven-time Super Bowl champ Tom Brady, NBA superstar Steph Curry, and NBA legend Shaquille O’Neal. 

• The suit alleges the defendants “made numerous misrepresentations” about FTX.
• It claims U.S. consumers collectively sustained more than $11 billion in damages.
• The Golden State Warriors were also included in the complaint.

Last week, FTX — along with West Realm Shires Services Inc., Alameda Research Ltd., and roughly 130 affiliated companies — filed for bankruptcy. 

As recently as January, FTX had raised $400 million in a Series C funding round, valuing the company at $32 billion.

Free Fall 

FTX’s bankruptcy has led to the demise of several sports-related deals.

The Miami Heat and Miami-Dade County ended its 19-year, $135 million naming rights deal secured in March 2021. FTX had paid Miami-Dade County $20 million to date, and its contract with the team and county requires the exchange to pay $16.5 million if it faces an “insolvency event.”

The Mercedes-AMG Petronas Formula 1 team suspended its deal with FTX, and esports organization TSM — the most valuable esports company in 2022 at $540 million — has also decided to suspend its 10-year, $210 million naming rights deal with FTX.

The Kansas City Royals are making their way downtown.

On Tuesday, Royals chairman and CEO John Sherman announced plans to build a $2 billion stadium and entertainment district either near downtown or in it.

Sherman, who bought the team for $1 billion in 2019, wrote that the process would be the largest public-private development project in the city’s history and includes the team’s “own intention to invest hundreds of millions of dollars directly into the ballpark and the ballpark district.”

The team envisions local restaurants and shops, office spaces, hotels, and housing.

• The team said construction of the plan could create 20,000 jobs, with $1.4 billion in labor income.
• It could generate an estimated $2.8 billion in total economic output.
• In its inaugural year, the ballpark is estimated to drive $185 million more in regional economic output than the team’s current home, Kauffman Stadium, does.

The Royals estimate the development around the new stadium could attract 2,200 onsite jobs. Employment could represent $200 million in annual labor income and over $500 million in annual economic input. 

Jackson County citizens won’t have to contribute any extra tax dollars.

Kauffman Construction

The announcement comes after the team announced in September 2021 it would explore the possibility of a new ballpark — the team’s lease at “The K” expires in 2031, at which point the venue will be nearly 60 years old.

“The renovations required at The K to achieve our objectives would cost as much or more than the price tag to develop a new ballpark,” Sherman wrote.

A sports-focused footwear company backed by Roger Federer has reported its best quarter to date.

On Running generated a record $347.5 million in net sales in Q3 2022 — a 50.4% increase year-over-year — despite supply chain constraints and an uncertain macroeconomic environment. Net income reached $22 million in Q3 2022, compared to $14 million in Q3 2021. 

• Net sales in North America increased 57.1% during the quarter to $183 million.
• In Europe, net sales reached $123.4 million, a 31.8% uptick year-over-year.
• Net sales in Asia-Pacific grew 85.2% to $25.6 million.
• Rest of the World net sales increased 150% in Q3 2022 to $11.6 million. 

On raised its full-year net sales outlook on the back of its record quarter. 

The Switzerland-based company projects net sales to hit $1.2 billion in FY2022, a $26.5 million increase from previous estimates that would represent a 55% uptick compared to FY2021. 

On went public in September 2021 after raising $746 million in an initial public offering valuing the company at roughly $7.3 billion. On Holding AG and its investors sold 31.1 million shares for $24 apiece during the IPO.

Committed to Tennis 

On is planning to double down on tennis with the help of Federer, who retired from the sport in September. 

“The plan is to expand into a more lifestyle area of tennis,” co-CEO Martin Hoffmann told Bloomberg.

On also plans to work with additional tennis pros.