A cryptocurrency exchange that's putting its stamp on the sports industry has closed on a sponsorship deal with the players on University of Kentucky's men's basketball team.
The UK players signed a name-image-likeness (NIL) contract FTX US, a U.S.-regulated crypto exchange owned and operated by West Realm Shires Services Inc. As a result of the deal, each player that has agreed to the contract will become an ambassador of the FTX brand as part of the FTX Champions program, with each player being compensated individually, according to a news release.
FTX already has buy-in from some big names in the sports world, such as Tom Brady (winningest quarterback in NFL history), David Ortiz (3x MLB World Series champion), Trevor Lawrence (NFL's No. 1 draft pick) and Udonis Haslem (3x NBA champion and captain of the Miami Heat). The exchange said partnering with one of the most storied college men’s basketball programs in the country is a key part of its Champions program that was designed to expand its presence to new audiences.
"We’re thrilled to work with players from one of the most successful collegiate basketball programs in the country," said Avi Dabir, vice president of business development at FTX, in the release. "Outside of the well-deserved financial compensation, we will be assisting in the student athletes’ education of digital assets so that they can make informed investment decisions as they look to enter the space."
Each of the players will be paid in U.S. dollars monthly with the funds being made available to each of them on their own FTX debit cards. The players also have the opportunity to create non-fungible tokens (NFTs) on the FTX NFT marketplace, with each player receiving most of the revenue on the sale of their individual NFTs.
What is a non-fungible token? Non-fungible tokens, or NFTs, are unique cryptographic assets that exist on blockchain and cannot be replicated, according to Investopedia. Unlike cryptocurrencies, which are fungible, NFTs cannot be traded or exchanged at equivalency. Some of the most common NFTs are digital artwork or other digital collectors items, like memes.
In case you missed the news, NIL policies changed this summer, allowing student athletes to benefit from their name, image and likeness. Some athletes have signed individual brand deals, but UK men's basketball players have also approached sponsorships as a team.
“The team came together as a unit as we’ve done with all our NIL sponsorships, and it was unanimous that we wanted to partner with a brand like FTX," said Kellan Grady, a Wildcats guard. "When speaking with the organization, it became clear our values aligned and their commitment to making a positive impact in the world through charity and other initiatives resonated with us all."
In addition to the NIL sponsorship, FTX will be making a charitable donation on behalf of the UK players to a charity of their choosing at a later date. This NIL partnership with the men’s basketball players of the University of Kentucky was facilitated by the Nickel Agency.
