The New York Jets, a National League Franchise, will be taking legal action after one of its sponsors failed to pay a sponsorship fee. Fubo Gaming, which inked a deal with the professional football team a year ago, delayed a $1.18 million payment.
Fubo Gaming Stopped Taking Bets a Month Ago
Fubo Gaming teamed up with the New York Jets in September last year, agreeing to have Fubo as the presenting sponsor on the Jets’ app. The sportsbook, on the other hand, agreed to provide the franchise with $12.4 million over five years. In addition, the two parties joined forces to open a special Fubo Sportsbook Lounge at the MetLife Stadium, providing fans of pro sports with exciting experiences.
Fubo Gaming, also known as Fubo Sportsbook, was FuboTV’s sports betting arm that ended operations last month. On October 17, the operator officially stopped taking wagers to allow its parent company to focus on its profitability goals.
This followed an unsuccessful search for a suitable sportsbook partner for Fubo Gaming. In August the company began searching for a new partner. While many companies had an interest in an agreement with the company, there was not a single suitable candidate that would have helped the company boost its profitability.
Perhaps as a result of the aforementioned hurdles, Fubo didn’t pay a payment of $1.18 million that should have been paid by October 1. As a result, the Jets contacted the Delaware Chancery Court, asking it to appoint a receiver who would have Fubo Gaming pay the due fee.
The NFL Franchise Is Disappointed by Fubo’s “Bad Faith”
As reported by SportsHandle, Foley & Lardner, an international law firm working with the New York Jets, warned that the franchise will do everything in its power to “recover the damages suffered as a result of Fubo’s defaults and bad faith.”
Foley & Lardner added that the sports team is open to a resolution that would be agreeable to both sides if Fubo desires to negotiate. While waiting for a response, the team asked the sports company to reveal more financial information and show whether it really isn’t capable of paying the fee. It also demanded the company post its balance sheet as of October 28.
A FuboTV representative later contacted Sports Handle, telling the news outlet that it believes that the New York Jets’ demands are without merit. The representative added that Fubo will defend its position if the need should arise.