A US federal bankruptcy judge has rescinded the FTX naming agreement for the Miami Heat Arena. The contract was part of a multimillion dollar long-term sponsorship agreement between the bankrupt crypto exchange and Miami-Dade County. It was set to begin in 2021.
FTX Signs and Advertising to be Removed from Miami Sports Facilities
On Wednesday, a federal bankruptcy judge based in Delaware issued an order terminating the naming rights agreement between FTX and Miami-Dade County. According to the terms of the contract, all business relations must be ended by December 30, 2022.
The order also stipulates that county authorities and sign-makers may remove any signage, advertising, and promotional material bearing the FTX name or logo. The Miami Heat basketball arena should no longer be referred to as the ‘FTX Arena’.
The sponsorship agreement between the cryptocurrency trading platform and the NBA stadium was worth $135 million. Miami-Dade County was set to receive the first payment of $5.5 million by January 1, 2023.
Following the filing of bankruptcy in November, the Miami Heat and Miami-Dade County have been searching for a new naming rights partner. A photo soon circulated online of workers taking down the FTX sign from the roof of the building.
In his December 11 order, Judge John T. Dorsey declared that the termination of naming rights would take effect immediately. Not only did FTX branding appear on the arena entrances and the basketball court, but the company also signed a variety of sponsorship agreements with different sports organizations and teams.
Shortly after obtaining the naming rights to the Miami Heat stadium, FTX became the official cryptocurrency exchange of Major League Baseball (MLB). In September of the same year, the company signed an exclusive sponsorship deal with the Mercedes-AMG Petronas Formula One team. After the bankruptcy filing, the partnership was also ended, and the FTX logo will be removed from all cars.
FTX, one of the leading crypto exchanges, has been hit hard by liquidity issues, leaving more than a billion customers with losses of up to $8 billion. Its founding CEO and founder Sam Bankman-Fried (SBF) resigned and was replaced by a new management team.
In December, SBF was arrested in the Bahamas, extradited to the US, and charged with multiple counts of fraud against customers or lenders. He pleaded guilty and was later released on bail. His trial is set to begin in early October.
Do you think Miami-Dade County will find a new naming rights partner for the Miami Heat stadium soon? Let us know what you think in the comments section below.
