Nationals Keep Running Ads for a Crypto Company That's Already Done

When you go to a Nationals home game you still see the same flashing words on the board. The sign says "A Decentralized Economy Needs Decentralized Money" and shows the Terra logo. It appears for one half-inning each game. Juan Soto is no longer on the roster and the team is hovering around a .500 win-loss record, but the ad stays.

Terra was a crypto firm that is now shutting down. Its website says Terraform Labs is winding down as of September 30 2024. The firm's X account last posted in February, talking about a lawsuit against Jane Street and a way for people hurt by the 2022 crash to file claims. In January 2024 Terra filed for Chapter 11 bankruptcy. Later, in August, its founder Do Hyeong Kwon pleaded guilty to several felony fraud charges and got a 15-year prison sentence. Authorities say his fraud helped Terra reach a peak value of about $50 billion and caused over $40 billion in losses for investors.

The Nationals signed a five-year sponsorship with Terra in February 2022 worth $38.15 million. More than four years of that deal have already passed. When asked, the team said in a statement that they are still contractually required to fulfill the agreement. Other clubs have gotten out of similar problematic deals. For example, the Houston Astros bought back the naming rights to their stadium from the failed energy firm Enron for just $2.1 million. Major League Baseball also removed FTX logo patches from umpire uniforms shortly after FTX's bankruptcy in late 2022.

Experts in sports marketing say most sponsorship contracts contain opt-out clauses for situations like this. One unnamed executive said the Nats might be held back by some leverage issue or a specific legal clause that prevents them from ending the deal. Searches through Terra's bankruptcy filings show no mention of the Nationals or the Lerner family, though an intermediary could have been involved. The liquidation administrator's office did not reply to a request for comment, leaving the exact reason unclear.