Crypto Coin Opps reported earlier some of the details of FTX’s collapsed arena branding deal with Miami-Dade & NBA basketball team, the Heat. It was announced by the team’s executive office, the arena would no longer brandish the cryptocurrency brand name. However, it appears, the pro-sports team is being forced to continue with the FTX Arena name by judicial courts.
A low moment for some fans, it appears the name ‘Wade County Arena‘ will have to wait.
Bankruptcy Blocks Further Actions
FTX filed for Bankruptcy on November 11th. At that hearing, the judge issued a ‘stay’ order of protection for the debt-riddled crypto-exchange. This order prevents any entity from acting against the brand.
The FTX Arena is owned by the city of Miami-Dade County. The Heat basketball team are lead benefactors of the arena, as the professional basketball team draws millions of visitors every year to its facility. And there are billions of views made to the arena annually.
The deal between Miami-Dade and FTX for arena naming rights is valued at $135-million. The contract terms have a duration of 15-years. That breaks down to $9-million-dollars per year. It’s estimated $2-million of that goes to the Heat basketball organization while $7-million is divided amongst Miami-Dade’s community and governing politicians.
To date, FTX has paid nearly $20M of the $135M due. A $5.5 million dollar payment is due in January of 2023.
FTX Arena Name Could Change Soon
If the crypto-exchange defaults on the payment in 2023, it could lead to the beginning of official procedures of Miami-Dade removing “FTX” from the Heat’s arena facade & products.
On December 16th, there’s also a hearing on this case, where Miami-Dade is asking for ‘relief’ from the stay order. If the judge sides with the popular Florida city, as they should, this could result in the FTX arena being renamed much quicker.
Earlier this year Sam Bankman-Fried told crypto blog Decrypt, business was going so well they didn’t even need another 18 years to pay the $100+ million dollars remaining on the contract.
That interview has not aged well, obviously.