Tom Brady brand takes a hit as cryptocurrency case unfolds in Florida

Imagine with me, for a couple of minutes, the looming spectacle of Tom Brady in a Florida courtroom, defending his business ties with convicted fraudster Sam Bankman-Fried, the founder of failed cryptocurrency firm FTX:  

“Your honor, the next case is Tom Brady,” the bailiff calls out. “He’s being sued for engaging in deceptive practices.”

“Tom Brady? Deceptive practices? Bailiff, is this connected to deflating footballs?” the judge asks.

“No, your honor,” the bailiff says. “This is connected to the FTX case. You know the fraud and conspiracy that Mr. Bankman-Fried was just convicted of? Well, Mr. Brady sold that fraud and conspiracy to investors.”

“So this time he was full of hot air,” the judge says.

“You’re a funny man, your honor,” the bailiff responds.

“Mr. Brady, please take your place at the defendant’s table so we can start this case,” the judge says.

“Your honor, we are going to need a bigger table,” the bailiff says.

“Is that Steph Curry in the back of the courtroom? And Naomi Osaka?” the judge says.

“Yes, sir, your honor. They were selling that fraud and conspiracy to their fans as well,” the bailiff says.

“Well, let the games begin,” the judge answers.

This is perhaps the most interesting chapter of the FTX cryptocurrency fraud yet to play out — the case unfolding in the Southern District of Florida against celebrities like Brady, Curry, Shaquille O’Neal and others for essentially selling snake oil.

Brady — in part because he is Tom Brady and in part because he appeared to be the closest and most connected to Bankman-Fried — is the biggest target.

The seven-time Super Bowl champion and future Hall of Famer was an “ambassador” for Bankman-Fried’s company and did television commercials promoting FTX as the “most trusted” outfit in the wild world of crypto. 

Some of these television commercials for FTX were broadcast during NFL games.

Michael Lewis, the author and Bankman-Fried’s press agent (he’s been widely criticized for his book about Bankman-Fried, “Going Infinite: The Rise and Fall of a New Tycoon “ for getting too close and offering a sympathetic portrait), told “60 Minutes” in October that Brady, 46, who retired last year after 23 years in the league, was infatuated with Bankman-Fried.

“I think Tom Brady thought he was just a really interesting person,” Lewis said. “I think he liked to hear what he had to say. And he really liked Tom Brady. And Sam wasn’t, like, a big sports person. So it was funny to watch that interaction. It was like, ‘These two people actually get along.’ It’s like the class nerd and the quarterback.”

He was so infatuated that he and his wife, supermodel Gisele Bundchen, were paid a total of $48 million for their endorsements and support — not in real currency, mind you, but in company shares. So when you read and hear about Brady losing millions as well — painting him to be another victim — he didn’t lose anything he already had. He didn’t wake up one day like investors did and find the money they paid for FTX investments was worthless. Brady didn’t lose his life savings or retirement.

But he helped convince others to do so.

I turn to the great W.C. Fields, who once declared in one of his films, “You can’t cheat an honest man.” And he was right. This is about greed, from the lowest investor to Brady. It was about trying to get over and not being satisfied with the traditional ways to earn money, but instead a voodoo currency that would magically make them rich.

According to Forbes, Brady is worth $530 million. He is hoping to be a part-owner of the Las Vegas Raiders — a deal that the NFL can’t possibly approve while Brady is one of the targets in the crypto scandal. 

Brady was already rich. It wasn’t enough. He wanted more.

Now he will be paying lawyers to keep his money. 

He is the biggest name in the lawsuit filed in December that accuses him and the other stars of misleading investors. “None of these defendants performed any due diligence prior to marketing these FTX products to the public,” the lawsuit said.

Lawsuits against celebrity spokespeople have traditionally been hard to win. There is always the ignorance defense — that they didn’t know what they were selling was fraudulent.

Miami lawyer Adam Moskowitz, who filed the lawsuit, believes that doesn’t absolve them of responsibility. 

“There are celebrities that made a lot of money and promoted this product,” he told Fox News last year. “There’s case law right on point that unless you tell people you’re getting paid and how much you’re getting paid and what your incentive is, you can be liable.”

In 2014, Brady was suspended by the NFL for four games after the league claimed the quarterback “was at least generally aware” of the Patriots’ plot to deflate footballs, making them easier to grip and throw. He was suspended without pay for four games. He denied the charges.

He should have been “generally aware” that what he was selling for FTX may have put people and their money at risk. Everybody should have been. 

You can hear Thom Loverro on The Kevin Sheehan Show podcast.