The New York Jets has taken a dispute with Fubo Gaming to court in an attempt to place its former sports betting partner in administrative receivership over a five-year sponsorship deal.
The NFL team laid out a petition claiming Fubo had defaulted on its obligations under the terms of the partnership.
Fubo Gaming spokesperson Jennifer Press stated: “We believe this petition is without merit and intend to vigorously defend our position,” when contacted by Gaming America for comment.
According to a demand letter cited by reports, Fubo agreed to pay the Jets $12.4m in sponsorship fees over the duration of their deal. However, the letter claimed that Fubo had failed to pay an installment of $1.2m, due on October 1.
On October 17, FuboTV announced it was closing its sports betting and gaming operations after failing to find a ‘suitable partner’ over the past two years. Previously, Fubo Sportsbook had been operational in Arizona, Iowa and New Jersey.
The Jets’ partnership was seen as a major step for the company’s expansion into sports betting, when the two parties signed a sponsorship agreement on August 1. However, since then, things have soured between the former partners.
Fubo Gaming President Scott Butera and FuboTV VP of Legal and Business Affairs Greg Riches were both served the letter of demand by an attorney representing the Jets. The letter states that the team had “fully performed its duties.”
These duties included providing Fubo with ‘substantial’ promotional benefits, a suite and tickets for home games, and investing in the construction, staffing and operation of the Fubo Sportsbook Lounge at its MetLife Stadium.
The Jets have extended an olive branch, saying it wished to “reach a mutually agreed resolution.” A Fubo-appointed lawyer said that, while the company was interested in hearing out a proposal, it had “minimal assets to meet the creditor claims” doled out by the Jets.
