The New York Jets are suing fuboTV to get the company to pay for its Fubo Gaming subsidiary’s sponsorship deal. [Image: Shutterstock.com]
unexpected ending
The New York Jets have filed a lawsuit against Fubo Gaming Inc. In Delaware Judicial Court amid a dispute over sponsorship agreement payments.
A fuboTV spokesperson said: “We believe this petition is unfounded and intend to vigorously defend our position.”
A short-lived attempt to break into the gambling world
The planes, according to the lawsuit filed on November 4, are seeking to appoint a third party to recover money owed from them by Fubo. Fubo Gaming is a branch of fuboTV that has had a short try to break into the world of gambling. The company recently filed for its dissolution in Delaware and is no longer pursuing its gaming plans.
Planes say Fubo needs to pay
Andrew Lee, a Foley & Lardner attorney who represents the Jets, said the team was “shocked to learn” of the move.
The team confirms that it has fulfilled all its contractual obligations
The Jets also believe that fuboTV is responsible for repaying Fubo Gaming’s debts incurred through the sponsorship agreement as the parent company of the closed subsidiary. In a letter sent to Fubo late last month, Lee noted that Fubo Gaming has been dissolved by order of fuboTV’s directors, which he claims proves they are responsible for paying the remainder of the debt.
According to Jets, Fubo agreed to pay $12.4 million over five years but had already missed a $1.2 million payment due on October 1. The team asserts that it has fulfilled all of its contractual obligations, including advertising for Fubo Gaming, providing tickets and a suite for the games, providing marketing resources, and that Fubo is acting in “bad faith”.
The legal system is responsible for deciding whether to remedy the situation. Its first task will be to determine whether fuboTV is liable to pay off the debts of a subsidiary and, if so, the amount and period of time during which it will have to pay the aircraft.
economic affairs
Fubo announced that it will be shutting down the youngster’s gaming arm in October. This move was not unexpected, as the company had already pulled back from the initial acquisition phase and was considering ways to re-enter the gaming scene.
However, economic problems made the company unable to return to the market without significant and potentially devastating losses. The company’s goal is to be profitable by 2025 and feels that continuing to run Fubo Gaming will significantly jeopardize that schedule.
There was hope that Fubo’s sportsbook could generate enough profits to change the company’s earnings trajectory. Unfortunately, operations in Arizona, Iowa and New Jersey weren’t enough to help the company avoid the red.
Fubo and Jets can rewrite their contractual agreement to offer fuboTV
While Fubo Gaming is no longer in service, fuboTV still exists. It is possible that Fubo and the Jets will rework their contractual agreement to offer fuboTV, not Fubo Gaming, as an entity in the sponsorship deal. Fubo will still have to pay the costs, but she’ll have a lot of exposure.
