Just last year, Miami-Dade County agreed to a $135 Million naming rights deal with crypocurrency exchange FTX.
Hard to age worse than that in a year.
In the past week, the company’s financial problems became national news. The crypto platform is facing a severe liquidity crunch, with founder Sam Bankman-Fried resigning after the company filed for bankruptcy. As a result, big money investors such as Tom Brady stand to lose a fortune.
It’s not just Brady; FTX has been involved in multiple parts of the sports world.
The company has partnerships with the Golden State Warriors, Cal Berkeley, the Mercedes F1 team, MLB and Steph Curry.
But their naming rights deal with the Miami Heat is undoubtedly the most visible.
As a result, Miami-Dade Mayor Daniella Levine Cava said that they’re trying to prepare for what comes next with FTX. Local 10 News in Miami quoted her saying: “We are closely monitoring it. We are exploring all possible avenues to prepare ourselves.
Uncertainty with FTX Deals
Now that they’ve declared bankruptcy and lost their CEO, it’ll be a fascinating subplot to see what happens next.
It seems extremely likely that major celebrities, athletes and organizations will be more hesitant to make deals with crypto companies.
This collapse doesn’t reflect well on their branding efforts, and uncertainty never sells well.
Miami-Dade, like many of FTX’s investors and partners, stands to lose a fortune. Naming rights can be re-sold, obviously, but they were able to secure a huge deal thanks to FTX’s seeming invincibility.
The Lakers with their Crypto.com Arena might be feeling a bit nervous too. Although they might have bigger problems to worry about.