Fubo Gaming signed agreements with a number of sports teams, among them, the New York Jets. The team is more than a little upset over Fubo’s decision to pull the plug already and isn’t taking this dilemma lying down.
On November 4, the Jets filed a lawsuit asking the court to appoint a receiver to assist in getting Fubo to cough up the dough the team is due as per the contract.
Fubo Gaming, a subsidiary of FuboTV, recently filed for dissolution in Delaware and ceased operations—a move Jets attorney Andrew Lee of Foley & Lardner was “shocked to learn,” according to an October 25 letter to Fubo Gaming.
FuboTV told Sportico, “We believe this petition is without merit and intend to vigorously defend our position.”
The Jets say Fubo agreed to pay $12.4 million in sponsorship fees over a five-year term but failed to pay about $1.2 million that was due on October 1, the team says. Lee’s letter believes the dissolution of Fubo Gaming was made “at the direction of the parent’s board of directors.”
Fubo’s actions represented “a blatant act of bad faith” to avoid payment, according to Lee. The Jets also contend they have fully performed their obligations under the agreement. The team says it has supplied a suite and tickets to games as well as furnished marketing and advertising support. As portrayed by the Jets’ letter, Fubo says it lacks sufficient assets to pay.
Fubo Gaming’s shuttering presents at least one different wrinkle. While the sportsbook won’t be operational, the company’s main product—its streaming service—will be. The Jets can maintain FuboTV, as the parent is responsible for the actions of Fubo Gaming, a subsidiary.
