The Miami Heat stadium of the National Basketball Association (NBA) will be renaming its stadium soon.
Away from FTX ‘Heat’
The naming rights agreement between Miami-Dade County and FTX is officially null following the decision of the US bankruptcy court judge John T. Dorsey. This termination was prompted by news involving former CEO and co-founder of now-bust crypto exchange Sam Bankman-Fried in fraud allegations claimed by federal authorities.
“The reports about FTX and its affiliates are extremely disappointing,” stated the team and county calls. “We will be looking forward together to find a new naming rights partner for the arena.”
Termination of the rights deal “shall be effective immediately upon entry of this order,” said the Florida judge Dorsey. After a couple of weeks of the exchange’s collapse, Miami-Dade County asked the federal court for immediate approval to remove the FTX’s name from the arena.
Back in March 2021, American Airlines Arena, which was home to Miami Heat, was renamed FTX Arena after FTX won the deal. The agreement for naming rights to the sports venue was permitted by the Miami-Dade Board of County Commissioners for $135 million for 19 years.
Mayor of the Miami-Dade County Daniella Levina Cava and other officials, claimed that the funds from this deal will be used to solve problems like gun violence and extreme poverty. The Miami-Heat is among the most successful NBA franchises, with two titles and five-times finalist since 2010.
Miami-Heat wasn’t the only one
Per reports, FTX paid $14 million in balloon payment the previous year to the counterpart, the rest $5.5 million is due. FTX struck several sponsorship deals with other sports entities such as Furia, Team SoloMid, UC Berkeley, Washington Capitals, Major League Baseball and more. Furthermore, the company also signed famous athletes, for example, Steph Curry, Naomi Osaka, Shohei Ohtani, Tom Brady, etc.
Sports partnership consultancy IEG reported that crypto companies helped boost NBA’s sponsorship revenue to almost $1.6 billion in the 2021-22 season, accounting for a 13% increase over the previous season. Crypto.com signed a deal valued $700 million with Los Angeles Lakers for 20-years for arena-naming rights, per CNBC reports.
Source: https://www.thecoinrepublic.com/2023/01/13/us-bankruptcy-judge-slams-the-gavel-on-ftx-in-miami-heat-sponsorship-deal/