After receiving approval from a US bankruptcy judge in Delaware on Jan. 11, Miami-Dade County will soon begin to remove FTX’s advertising brand from the Miami Heat’s arena, according to the Associated Press.
Officials in Miami-Dade filed a request to cancel the naming rights agreement on Nov. 22 following FTX’s bankruptcy declaration.
FTX Arena no more
In order to rename the NBA arena “FTX Arena” until 2040, county officials secured a $135 million contract with the cryptocurrency exchange in 2021. The FTX logos can be seen on a number of doors, the arena roof, the basketball court, the security polo shirts, as well as many of the cards that staff members use to enter the building.
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 Jan. 1.
Sports sponsorship arrangements were an important marketing strategy for FTX. A partnership 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 outfit, also canceled a $210 million deal with FTX. TSM was renamed TSM FTX as a result of the partnership, which took effect in June 2021.