In March of 2021, Miami-Dade County, which owns the arena and was the party responsible for negotiating the naming rights contract, came to an agreement with FTX.
Following a decision made by both the Miami Heat basketball club and Miami-Dade County to sever its affiliation with FTX on the same day that the cryptocurrency exchange filed for bankruptcy, the building that is home to the Heat’s home games will shortly be given a new moniker.
Since June of 2021, the structure had been known as FTX Arena, and a sponsorship agreement between FTX and the county that would last for 19 years and be worth 135 million dollars was about to begin.
The news surrounding FTX was described as “very disheartening” in a statement that was released jointly by the Heat and the Mayor of Miami-Dade County, Daniella Levine Cava, on Friday night.
Identify a new naming rights partner for the arena
According to the statement, “Miami-Dade County and the Miami Heat will be taking immediate steps to terminate our business arrangements with FTX, and we will be working together to identify a new naming rights partner for the arena.”
FTX has entered into a variety of sponsorship partnerships with various sporting organizations, including one with Mercedes for Formula One racing and one with Major League Baseball, whose umpires are required to wear the company’s insignia as part of the agreement.
Mercedes announced earlier on Friday that it will immediately remove any FTX insignia that were present on its Formula One cars.
A number of the best athletes in the world, such as the quarterback for the Tampa Bay Buccaneers, Tom Brady, and the guard for the Golden State Warriors, Stephen Curry, all had endorsement deals with FTX.
Last year they came to an agreement with FTX
In March of 2021, Miami-Dade County, which owns the arena and was the party responsible for negotiating the naming rights contract, came to an agreement with FTX. After three months, the building was rebranded as the FTX Arena rather than its previous moniker, the American Airlines Arena.
As part of the agreement, the Heat were supposed to earn $2 million each year.
The vast bulk of the remainder was estimated to amount to approximately $90 million over the course of the agreement’s duration.
It was going to be paid to the county, with the vast majority of it being designated for the fight against poverty and gun violence.
FTX went bankrupt
FTX, which had been the third-largest cryptocurrency exchange in the world at the beginning of the week, filed for bankruptcy protection on Friday, bringing an end to a string of catastrophic days for the company.
Sam Bankman-Fried, who was the CEO of the company as well as its founder, has handed in his resignation.
After experiencing the cryptocurrency equivalent of a bank run, the troubled cryptocurrency exchange filed for protection under the provisions of the bankruptcy code because it was short billions of dollars.