Just days after Fubo Gaming suspended its sports betting operations, the New York Jets have filed a lawsuit against the operator in Delaware’s Court of Chancery.
The Jets are seeking the appointment of a receiver in collecting a $1.18 million sponsorship fee from Fubo that is allegedly a month overdue.
Fubo & Jets Background
On Sept. 8, 2021, Fubo and the Jets announced a multi-year partnership that made Fubo the official sports betting partner of the football team. “The partnership centers around the creation of the Fubo Sportsbook Lounge at MetLife Stadium for Jets home games, set to debut during the 2021-22 NFL season, and will be the first authorized, mobile sports betting lounge in the stadium,” Fubo’s press release from 2021 said. “In addition, Fubo Sportsbook will become the presenting partner of the Jets Mobile App and is the team’s first legal sports betting (LSB) partner to leverage the Jets’ new advertising data partnership with Sportradar.”
In the initial agreement between the two parties, Fubo Gaming agreed to pay the Jets $12.4 million in sponsorship fees over the five years of its sponsorship agreement, according to Jets attorney Andrew L. Lee.
Only one thing can stop Jets fans from winning another belt: the bye week.
See you Week 11. pic.twitter.com/IHiGOKLAAA
— New York Jets (@nyjets) November 10, 2022
FuboGaming Bows Out
Just a year after the five-year partnership was thrown in motion, on Oct. 17, Fubo scrapped its gaming operations and thus, its partnerships associated with the sportsbook.
Fubo ultimately “concluded that continuing with Fubo Gaming and Fubo Sportsbook in this challenging macroeconomic environment would impact our ability to reach our longer-term profitability goals,” David Gandler, co-founder and CEO of FuboTV, said in the press release.
Fubo Gaming filed a certificate of dissolution with Delaware’s Division of Corporations on the very same day.
We all we got, we all we need. pic.twitter.com/FauX92YNMa
— New York Jets (@nyjets) November 8, 2022
Upsets The Jets
Enter the Jets on Oct. 25, whose legal team sent a letter to Fubo condemning their decision to cease operations while in partnership with the team and adding that they “intend to take all actions necessary to recover the damages suffered as a result of Fubo’s defaults and bad faith.”
“The Jets were shocked to learn late last week, from public reporting, of an additional default by the filing for dissolution of Fubo Gaming in Delaware and its ceasing of all operations, both at the direction of the board of directors of its parent company, FuboTV,” the letter read.
Moreover, it demanded that Fubo turn over its financial information to the organization so that the Jets can assess Fubo’s financial ability to pay their debts. It added that they would be willing to discuss a “mutually agreeable resolution of this matter.”
Lee added that the Jets have given Fubo “substantial marketing and advertising benefits, a suite and tickets to Jets home games,” while “incurring significant expense to build, staff, and operate the Fubo Sportsbook Lounge at MetLife Stadium, among other things.”
In response to the letter, Jennifer Press, a spokeswoman for Fubo, was quoted as saying, “we believe this petition is without merit and intend to vigorously defend our position.”
While it’s unclear what the solution looks like, it’s clear that this dispute is a far cry from over.