Tom Brady Accused of Using His Charity to Make Profits For His Businesses – BlackSportsOnline
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Tom Brady Accused of Using His Charity to Make Profits For His Businesses

Tom Brady seems to be in deep sh*t following his divorce from Gisele Bündchen. This deep sh*t got to do with investors filing a class-action lawsuit against Brady, Bündchen, and FTX’s other celebrity endorsers.

This could be the main reason why Tom and Gisele ended their marriage.

The Daily Beast got the details;

Star NFL quarterback Tom Brady has had a rough year. The seven-time Super Bowl champ came out of retirement—reportedly wrecking his marriage to supermodel Gisele Bündchen—to play a rocky season with the Tampa Bay Buccaneers. And the player and his ex-wife could now lose their sizable investment in collapsed cryptocurrency exchange FTX, which filed for bankruptcy and is reportedly missing at least $1 billion in client funds. The couple took an equity stake in FTX last year as part of a deal that made them brand ambassadors. On Tuesday, investors filed a class-action lawsuit against Brady, Bündchen, and FTX’s other celebrity endorsers.

These may not be the 45-year-old’s only setbacks. Public records for Brady’s charity reviewed by The Daily Beast reveal that his sports therapy and wellness company TB12, Inc., was in the red as recently as 2020, with a negative balance of $7 million in net assets.

Meanwhile, his TB12 Foundation—lately in the news for installing his “TB12 Method” for injury recovery and prevention in select Florida schools—has doubled its revenues in recent years with donations from just a handful of supporters, including multimillionaire YouTube personality Logan Thirtyacre, who shelled out $200,000. (The Brady superfan once paid $800,000 to a charity auction to dine with the GOAT and interviewed him over Zoom in at least one YouTube video.) Canadian billionaire Lino Saputo Jr., a Porsche-loving hockey fanatic who helms the Saputo cheese company, donated $250,000.

Other donations included $10,000 each from the NFL Foundation, Fox Sports (where Brady will reportedly star as a lead analyst post-career), and Federico Laurencich, a helicopter pilot in Costa Rica, where Brady and Bündchen owned a hilltop mansion.

Brady, who earned $350 million during his two decades with the New England Patriots, has given a small fraction of his riches to his own charity, with little over $200,000 in donations, according to the TB12 Foundation’s tax filings.

The quarterback’s for-profit company TB12, Inc. is the sole provider of “sports therapy” sessions for the TB12 Foundation. Since it launched in 2015, the foundation has paid Brady’s firm a total of more than $1.6 million for its services, and it’s the only company listed as an “independent contractor” for such treatments.

Some of the charity’s directors are paid employees of TB12, Inc., tax filings show.

 “When a charity has a related for-profit legal entity,” Styron said, “it can turn into an accountability black hole.”

“If the charity is granting or reimbursing funds to the for-profit entity, and the for-profit is then paying money to other companies or individuals, there is a danger that charitable dollars are indirectly subsidizing the expenses of the for-profit,” she added. “Money is fungible.”

Still, Brady’s personal funding of his own charity appears limited. The foundation’s tax records indicate that Brady—among the highest paid players in the NFL, in part thanks to endorsement deals and businesses he co-founded other than TB12 such as his NFT startup Autograph, content company 199 Productions, and new clothing line BRADY, which sells $100 cotton hoodies—gave a total of $101,793 to the group between 2017 and 2019.

“A lot of philanthropy is some combination of providing public good while garnering public goodwill for a charity’s funders,” Styron said. “But in this case, the person who appears to be benefiting from the public goodwill isn’t providing significant funding to the organization.”

Brady and Bündchen, who alone is worth $400 million, were previously called out in a New York Post report for donating only a sliver of their wealth to their own charities—including the Luz Foundation, of which Bündchen is president. Gisele Inc., a company owned by Bündchen, donated $350,647 to her nonprofit’s coffers in 2019. That year, records show, Luz’s sole $80,000 donation went to a Bon and Tibetan Buddhist group formerly known as “Pointing Out The Great Way Foundation.”

Financial data from the IRS, posted on ProPublica’s Nonprofit Explorer, reveal the Luz Foundation’s revenues skyrocketed to more than $5 million in 2020, while its expenses totaled just $280,948. Bündchen’s representatives could not be reached for comment, and an accountant for the charity declined to comment.

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