FTX’s $135 Million Naming-rights Deal For Miami Heat’s Arena Has Officially Dead

Key Points:

• The naming rights agreement between FTX and the Miami Heat’s home arena was canceled by the judge at the court hearing on Wednesday in the Bankruptcy Court of Delaware.
• Officials in Miami-Dade filed a motion to cancel the contract on November 22, when the exchange filed into bankruptcy and was given authority to remove FTX signage from the arena.
• The arena’s owner is now free to seek out new partners and bidders for the structure.

The naming rights agreement between FTX and the Miami Heat’s home arena was canceled by the judge at the court hearing on Wednesday in the Bankruptcy Court of Delaware. The arena’s owner is now free to seek out new partners and bidders for the structure.

The information was revealed following a court proceeding in the Bankruptcy Court of Delaware when lawyers informed the judge that fund from Alameda Research was used to finance the agreement with Miami-Dade county.

Sam Bankman-Fried, the CEO of FTX at the time, and Miami-Dade, the proprietors of the arena, agreed to a $135 million naming rights deal in March 2021. The deal sparked questions in the industry, not just because of its size but also because the exchange had only been around for two years at the time, having launched in 2019.

Officials in Miami-Dade filed a motion to cancel the contract on November 22 following the exchange bankruptcy declaration and were given the authority to remove FTX signage from the arena. What it will be renamed to is unknown.

Miami-Dade will need to determine whether to keep the money that FTX has already received from the agreement or send it over to the bankruptcy court in charge of the case.

The Miami Heat arena’s owners are now free to seek out new bidders and joint ventures for the structure according to today’s order, which put an end to the parties’ split.

Prior to its demise, FTX was one of the biggest cryptocurrency exchanges in the world. In November, the exchange filed for bankruptcy. Bankman-Fried, the company’s founder, was detained in the Bahamas in December and extradited to the United States to face charges.

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