FTX's hired financial advisors have disclosed in court documents that they have analyzed whether the millions of dollars in promotion fees paid to sports stars before the company's bankruptcy in November last year can be recovered under Chapter 11 bankruptcy law.
According to court documents, the advisors reviewed payments made to former NBA star Shaquille O'Neal, tennis star Naomi Osaka, and other professional athletes and their teams to determine if these transactions complied with relevant regulations, allowing FTX to revoke transactions that occurred before it applied for bankruptcy protection.
It is currently unclear whether all payments can be recovered or whether any athletes or teams have already requested a refund. FTX's disclosure information will describe many transfers to athletes, teams, and leagues as prepayments related to advertising or sponsorship transactions.
