The cryptocurrency platform, which gave the home basketball team its acronym, fell into financial trouble after the 2021 deal
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The Miami Heat announced that they will change the name of their stadium FTX Arena after this cryptocurrency platform filed for bankruptcy on Friday. (REUTERS/Marco Bello)
The FTX Arena, home of the Miami Heat, has become the latest sports stadium hit by the curse of naming rights for sports stadiums. The FTX cryptocurrency platform joined the growing list of companies that suffered financial problems after signing this type of agreement.
The Miami Heat announced that they will change the name of their stadium FTX Arena after the cryptocurrency firm filed for bankruptcy on Friday. FTX was plunged into financial turbulence in the space of a mere week, prompting the resignation of its chief executive, Sam Bankman-Fried.
The bankruptcy of FTX confirmed the total collapse of this platform, one of the most important in the sector, which was valued at USD 32,000 million and which collapsed in a few days due to lack of liquidity and the haste of users to withdraw your funds. The company said it would begin a process to review and monetize assets for interested parties.
The FTX logo will no longer be seen at the home of the Miami Heat. (REUTERS/Marco Bello)
In a joint statement late Friday, local officials and the team said they would end their naming rights deal with FTX. “The reports on FTX and its affiliates are extremely disappointing,” they argued. “Miami-Dade County and the Miami Heat are taking immediate steps to terminate our business relationship with FTX.”
Headquarters, formerly known asAmerican Airlines Arena, was renamed FTX Arena in 2021. At that time, FTX and Miami-Dade signed a naming rights agreement that would provide the county and the Heat with $135 million over 19 years. FTX said it would also pay an additional $5 million to community causes, according to the Wall Street Journal.
The world of cryptocurrency has notable ties to the NBA. For example, the Los Angeles Lakers stadium went from being the Staples Center to the Crypto.com Arena and Stephen Curry > (FTX) and LeBron James (Crypto.com) have signed endorsement deals with companies in the cryptocurrency industry.
FTX has been highly visible in the sports world in recent years. The brand signed deals with celebrities and athletes who have invested in FTX or served as brand ambassadors for the company. But signing a deal to sponsor the Miami Heat's arena was perhaps his most high-profile sports deal.