For $135 million, county officials arranged with the crypto exchange in 2021 to rename the Miami Heat’s arena FTX Arena until 2040.
According to the Associated Press, Miami-Dade County will soon begin removing FTX’s advertising brand from the NBA’s Miami Heat arena after a United States bankruptcy judge in Delaware granted the right on Jan. 11.
County officials reached a $135 million deal with the cryptocurrency exchange in 2021 to rename the Miami Heat’s arena FTX Arena until 2040. FTX emblems can be found on a variety of entrances, the top of the arena, the basketball court, the security polo shirts, and many of the cards staff need to access the facility.
Following FTX’s bankruptcy filing, Miami-Dade County officials filed a move to cancel the naming rights deal on November 22. As part of the agreement, the Heat would earn $2 million per year beginning in June 2021. The latest payment, which should have been $5.5 million, was due on January 1.
Sport sponsorship arrangements were an important marketing strategy for FTX. A pact with a Mercedes-backed Formula 1 international racing team, the naming rights to Cal Memorial Stadium in Berkeley, California, and endorsements from NFL quarterback Tom Brady were among the collaborations.
TSM, a professional esports organisation, also cancelled a $210 million deal with FTX, according to Cointelegraph. TSM was renamed TSM FTX as a result of the partnership, which took effect in June 2021.
In another hearing before Judge John T. Dorsey, an attorney for the defunct crypto exchange declared that FTX has “recovered $5 billion in cash and liquid cryptocurrency,” despite the fact that its liabilities total $8.8 billion. In addition, Judge Dorsey granted a request to keep the names of FTX’s clients confidential for three months.
Following the crypto exchange’s “liquidity crunch” and spectacular collapse, about 130 companies in FTX Group — including FTX Trading, FTX US, under West Realm Shires Services, and Alameda Research — filed for bankruptcy in the United States on Nov. 11.