• A federal bankruptcy court has canceled the name rights agreement between FTX and Miami-Dade County.
• The action permits the mark of the defunct bitcoin exchange to be removed from the arena where the National Basketball Association (NBA) plays.
• The new order allows Miami-Dade to remove all FTX signs and advertising at the arena.
The Federal Bankruptcy Court in Miami recently issued an order to cancel the agreement between FTX and Miami-Dade County, allowing for the removal of the defunct bitcoin exchange’s branding from the Heat Arena, where the National Basketball Association (NBA) plays.
FTX had been the third-largest cryptocurrency exchange before it experienced catastrophic losses estimated at $8 billion to $10 billion, leading to its eventual bankruptcy filing. Miami-Dade County officials had motioned to cancel the naming rights deal on Nov. 22, due to FTX’s failure to make its final payment of $5.5 million, as part of the agreement. The county has also stated that FTX should reimburse them $17 million in damages for breach of contract.
The ruling issued by the court allows Miami-Dade County to immediately begin removing all FTX branding from the arena, which includes the top of the arena, the basketball court, the electronic cards used by employees to obtain entry to the facility, and the polo shirts worn by security officers.
Prior to its downfall, FTX had established marketing partnerships with a variety of sports organizations and teams, such as a Mercedes-backed Formula 1 international racing team, Cal Memorial Stadium naming rights, and NFL quarterback Tom Brady endorsements. Team SoloMid, a professional esports group, also canceled a $210 million contract with FTX.
It remains to be seen who will take over the naming rights of the Heat Arena. For now, the arena will remain referred to as the Miami Heat Arena until the new naming rights agreement is reached.