Court Strips FTX Naming Rights to Miami Heat Arena
Florida Court stripped FTX the naming rights to the Miami Heat arena in a January 11 ruling conveyed retroactive to December 31, 2022. The court-directed cancellation of the sports arena extends the contagion witnessed since the sudden FTX downfall in November 2022.
The Wednesday ruling delivered by the Florida judge is hot on the heels of the submission made before the Delaware Bankruptcy Court that the naming of the sports arena was funded through proceeds from Alameda Research.
Cancelation of FTX Naming Rights
The ruling echoes previous approval granted to Miami-Dade county to pull down the FTX signage since the crypto exchange sought Chapter 11 bankruptcy protection. The court order issued on Wednesday concluded the parties’ separation. The court’s order allows the county to seek new bidders and partners for the Miami Heat arena.
Explaining the Florida Court ruling, legal analyst David Weinstein indicated that the motion granted terminates the naming of the sports center from the FTX arena. He added that the contract cancellation would enable FTX to recover the lost money.
Weinstein observed that Miami-Dade should consider alternative use to reallocate the amount given by FTX or refund it to the bankruptcy court. He added that the county could prove the means they obtained the money and how FTX duped it into the alleged Ponzi scheme.
Crypto Firms Generosity in Naming Rights Deals
The Miami Heat sports arena embroiled in the FTX saga traced to 1999 when the 18000-seat center was opened and named American Airlines Arena in a $213 million. Embattled Sam Bankman-Fried entered into a 19-year agreement in March 2021. The $135 million rights deal would have earned Miami-Dade county $2 million annually. The deal raised concerns about the generosity granted by a two-year-old company launched in 2019.
FTX’s agreement with Miami-Dade over the naming rights deal to the arena mirrored the approach adopted by other crypto companies in late 2021. Such is evident in the $700 million deal signed by Crypto.com in November 2021 with Staples Center owners. The deal provided the crypto exchange rights to name the Los Angeles Lakers and Clippers arena.
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