With the crash of cryptocurrency exchange FTX, the naming-rights holder for the Heat arena, the franchise and Miami-Dade County released a joint statement on Friday, stating that it would “take action immediately to terminate” its business relationship with FTX.
The team plans to “seek a new naming rights partner” for Miami’s venue, per the statement. The news comes as FTX filed for Chapter 11 bankruptcy on Friday that included its CEO, 30-year-old Sam Bankman-Fried, resigning from the crypto industry giant. According to the Wall Street Journal, the U.S. Securities and Exchange Commission and Justice Department are also investigating the company.
“We will be working together to find a new naming rights partner for the arena,” the statement read. “We are proud of the impact our Peace & Prosperity Plan — sponsored by County Commissioner Keon Hardemon and funded through the original deal — is already having in preventing violence and creating opportunity for young people across Miami-Dade, and we look forward to identifying a new partner to continue funding these important programs in the years ahead.”
Ira Winderman of the South Florida Sun Sentinel reported that the franchise has begun the process of detaching the FTX branding from the team facility. However, a temporary name for the venue has not been decided.
The venue will remain as FTX Arena until Saturday night’s game against the Hornets. Miami’s next home game will be Monday when the Heat face the Suns before starting a seven-day road trip, per the Sentinel. Prior to Friday’s joint statement, the franchise stated that it was “far too premature” to comment on FTX’s collapse.
In March 2021, Miami-Dade County agreed to a 19-year, $135 million contract with FTX for naming rights of the facility and officially starting the agreement in June ’21. According to the Sentinel, the FTX logo was formally placed on the roof of the venue, replacing the American Airlines logo. The air carrier recently exited its sponsorship with the franchise.
In addition to its affiliation with the Heat, FTX spent an extensive amount of money to secure endorsement deals with investors like Gisele Bündchen, Tom Brady and Steph Curry. The company’s logo and name is also plastered on the logos of MLB umpires. And earlier on Friday, Mercedes decided to remove FTX logos from its F1 cars as it suspends the sponsorship deal, per Autosport. In filing its bankruptcy, CNN reported that FTX had approximately $10 billion to $50 billion in liabilities and assets.
“I’m really sorry, again, that we ended up here,” Bankman-Fried tweeted Friday. “Hopefully things can find a way to recover.”
Bankman-Fried will remain to assist in the transition of the mammoth crypto business. His replacement is John J. Ray III, a lawyer who managed the withdrawal of Enron.
