The naming rights agreement between FTX and Miami Heat for the basketball arena has been ended by a U.S. federal bankruptcy court. As part of a sponsorship agreement between Miami-Dade County and the crypto exchange, the sports venue was renamed FTX Arena in 2021.
Downtown Miami Sports Facility to Remove FTX Advertising and Signage
A federal bankruptcy judge in Delaware revoked the FTX naming rights agreement for Miami Heat arena. The order states that the retroactive termination of the agreement between Miami-Dade County, and the one-of-the largest digital asset exchanges, will occur on December 30, 2022.
U.S media reports that the Miami Heat’s stadium will no longer be called ‘FTX Arena’. The county authorities can remove any signage and advertising with the FTX logo and name.
Under a $135-million, 19-year sponsorship agreement between FTX and Miami-Dade County since June 2021, the basketball arena has been named after FTX. January 1, 2023 was the due date for $5.5 million payment.
After the filing of Chapter 11 bankruptcy protection for the company in November, Miami Heat & Miami-Dade County announced that they would be terminating their business relationship with FTX and looking to find a new naming-rights partnership.
After their announcement was made, a picture circulated online showing workers removing the FTX sign from the roof of the building. The FTX logo is found on the court’s basketball court as well as at the arena’s entryways. Judge John T. Dorsey, in his Dec. 11, order stated that the termination of the naming rights will take effect immediately.
FTX collapsed due to liquidity problems, potentially leaving over a million customers without a cryptocurrency exchange. The losses could have reached $8 billion. The company’s CEO, Sam Bankman-Fried (SBF), resigned. A new management team was then formed.
SBF was detained in December by the Bahamas. He was then extradited to America and accused of multiple charges including fraud against clients and lenders. SBF pleaded not guilty. His trial is scheduled for early October and he has been released from bail.
FTX signed a variety of sponsorship agreements with various teams and organisations in 2021. Soon after securing the naming rights to the Miami Heat’s stadium venue, FTX was made the official cryptocurrency exchange for Major League Baseball (MLB).
In September that same year, Mercedes-AMG Petronas Formula One Team signed a long-term sponsorship deal. After the bankruptcy filing, that partnership was also terminated by Mercedes. Mercedes announced its decision to remove the FTX logo from all of their cars.
This story contains tags
agreement, Arena, Bankruptcy, contract, Court, Crypto, crypto exchange, Cryptocurrencies, Cryptocurrency, Deal, Exchange, ftx, FTX Arena, Judge, miami, Miami Heat Arena, Miami-Dade County, Naming Rights, order, partner, partnership, sponsor, Sponsorship, stadium, termination
Are you positive that Miami-Dade County is going to find a new partner in naming rights for the Miami Heat arena’s future? Leave your comments below.
Lubomir Tassav
Lubomir Tassev, a tech-savvy journalist in Eastern Europe, likes Hitchens’s quote, “Being an author is what you are, not what it is.” He also enjoys international politics, economics, and crypto.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.