The $135-million FTX sports sponsorship deal with Miami HEAT and Miami-Dade that allowed naming rights to the crypto trading platform was canceled by basketball team Miami HEAT and Miami-Dade County on November 12.
In a joint press statement, they said, “The reports about FTX and its affiliates are extremely disappointing. Miami-Dade County and the Miami HEAT are immediately taking action to terminate our business relationships with FTX, and we will be working together to find a new naming rights partner for the arena.”
As per the terms of the sponsorship deal, FTX will have to pay these entities the contract fee for three years in case of a default which includes insolvency events. At the rate of $5.5 million a year, FTX will have to pay $16.5 million within 60 days. If the payment is not made within 10 business days, the county will charge 12% interest per annum until the payment is made.
Photos on social media showed that the FTX logo was being removed from the HEAT Arena.
During the bull run of 2021, several high-ticket crypto sports sponsorship deals were struck and the FTX-HEAT Arena deal was one of them. It gave FTX the naming rights and the facility was renamed FTX Arena.
