When comparing the size of SBF/FTX outlay on EA vs. stuff like naming rights, I think it is important to compare apples to apples. As far as the victim’s perspective, the key question is “how much money went out the door” as opposed to “how much did SBF/FTX plan or commit to spend in the future?” Although I don’t know how the naming rights deals were set up, I suspect that much of the money was to be paid in the future. That means the stadiums, teams, etc. are now general unsecured creditors on any claims. I am hearing that depositor claims may be valued on the distressed-debt market at 3-5 cents on the dollar, so the claims of naming-rights counterparties are likely worth even less.
When comparing the size of SBF/FTX outlay on EA vs. stuff like naming rights, I think it is important to compare apples to apples. As far as the victim’s perspective, the key question is “how much money went out the door” as opposed to “how much did SBF/FTX plan or commit to spend in the future?” Although I don’t know how the naming rights deals were set up, I suspect that much of the money was to be paid in the future. That means the stadiums, teams, etc. are now general unsecured creditors on any claims. I am hearing that depositor claims may be valued on the distressed-debt market at 3-5 cents on the dollar, so the claims of naming-rights counterparties are likely worth even less.
Fair point.