The New York Jets have requested the Delaware Chancery Court to appoint a receiver for Fubo Gaming to collect a sponsorship fee that was due last month.
Fubo Gaming, the now-defunct gaming division of FuboTV, agreed to a multi-year sponsorship deal with the Jets in September 2021. This included the creation of the Fubo Sportsbook Lounge at MetLife Stadium and Fubo becoming a presenting partner on the Jets’ app.
According to SportsHandle, Foley & Lardner LLP, a law firm that represents the Jets, has stated in a letter that the agreement would see Fubo Gaming pay the NFL team $12.4m in sponsorship fees over five years.
However, the law firm has declared that Fubo Gaming has missed a payment of $1.18m which was due on October 1.
Foley & Lardner LLP stated in the letter: “The Jets intend to take all actions necessary to recover the damages suffered as a result of Fubo’s defaults and bad faith.”
FuboTV brought a halt to its Fubo Gaming operations on October 17 due to problems with funding requirements.
The unit underwent a strategic review in August as it sought to partner with a third-party sportsbook. Although there was plenty of interest, no deal that would have supported the company’s profitability goals was found.
The law firm’s letter states that the Jets are open to a “mutually agreeable resolution” to the matter which includes the payments owed under the deal.
However, the team’s attorneys have asked Fubo to supply the requisite financial information to evaluate the company’s ability to repay the amounts due, including Fubo Gaming’s balance sheet as of October 28. The lawsuit has yet to be processed by the court.
“We believe this petition is without merit and intend to vigorously defend our position,” a FuboTV spokesperson told Sports Handle.
In a recent update to its shareholders, FuboTV stated that it is “exploring ways to optimize” its user base in the gaming space without investing its own funds.
