NFL franchise the New York Jets have filed for a court to appoint a receiver for dissolved betting operator Fubo Gaming, claiming that the business has defaulted on its debt to the team.
The case was filed on Monday (7 November) with the Delaware Chancery Court.
The case follows Fubo dissolving its sportsbook arm, which had struggled to achieve significant market share since launching.
Fubo Gaming had partnered with the Jets in September 2021, in a five-year sponsorship deal worth $12m.
The business announced it would shut down its betting operation last month, but the Jets said that even before then it had failed to pay a $1.2m installment by 1 October.
In addition, it said the organisation was not aware that the arm would be dissolved and would not pay outstanding debts such as those owed to the franchise. This, it said, counted as a default.
As a result, it submitted a letter calling for a receiver to be appointed to collect the debt.
“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 said.
The Jets are represented by Jonathan M. Stemerman of Armstrong Teasdale LLP.
The decision to shut down the Fubo sportsbook was made following a strategic review of the business, which was launched in August after FuboTV said it could not operate its sports betting division alone in the current economic environment.
FuboTV said multiple parties had expressed interest in the betting business, but the provider also said that none of these opportunities would have allowed FuboTV to “lower its funding requirements and generate sufficient returns to shareholders”.
