Miami Heat Announce FTX Arena Deal Terminated After Bankruptcy
It comes as no surprise, but it appears FTX Arena in Miami is no more.
Earlier today, news broke that Miami-Dade County and the Heat were monitoring the situation with FTX.
READ: MIAMI KEEPING TABS ON $135 MILLION FTX ARENA NAMING DEAL
The cryptocurrency exchange's financial issues have been well publicized in recent days.
Most of their agreements with athletes and other organizations don't rise to the level of naming rights, however.
So speculation immediately began that the Heat would soon be forced to look to a new partnership. Late Friday afternoon, the team released a statement confirming FTX Arena is no more.
The deal lasted all of one year after it was signed in 2021 for $135 million. On top of sports partnerships, CEO Sam Bankman-Fried was a frequent donor to Democrats, far-left causes and Joe Biden.
Miami-Dade had also been using proceeds from the agreement to fund community programs designed to combat violence. It's unclear what will happen to those programs now that the arrangement is over.
Miami Beach, Florida, FTX Off the Grid free event, Race Weekend Grand Prix, entrance sign. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images)
FTX Ramifications
$135 million was a significant number for arena naming rights, so the Heat will be hard pressed to match that in the open market. Especially given the rapidly declining economic situation for major corporations.
Numerous others sports personalities and leagues will also be impacted by FTX's collapse.
The company was so ingrained with Major League Baseball that umpires had been wearing FTX logo patches on their uniforms.
LB Home plate umpire CB Bucknor seen with an FTX patch on his sleeve. (Photo by David J. Griffin/Icon Sportswire via Getty Images)
The ramifications of FTX's bankruptcy are just beginning to unfold. Although individuals and brands are more than happy to take advertiser money, this could hurt crypto's ability to partner with talent going forward.
In what's sure to be the first of many partnership terminations to come, FTX Arena is officially done.