Miami-Dade County will soon begin removing the FTX advertising brand from the NBA’s Miami Heat stadium, after being granted the right by a US bankruptcy judge in Delaware on January 11, reports the Associated Press.
County authorities negotiated a $135 million deal with the cryptocurrency exchange in 2021 for the rights to rename the Miami Heat stadium as FTX Arena through 2040. Several entrances, the roof of the stadium, the basketball court, the security poles, as well as many of the cards employees use to access the facilities bear the FTX logo.
Following FTX’s bankruptcy filing, Miami-Dade authorities filed a motion Nov. 22 to rescind the naming rights deal. As part of that agreement, the Heat were to receive $2 million annually beginning in June 2021. On January 1, the last payment was due, which should have been USD 5.5 million.
Sports sponsorship deals were one of FTX’s key marketing strategies. OROne of the partnerships included an agreement with an international Formula 1 racing team backed by Mercedes, the naming rights to Cal Memorial Stadium in Berkeley, California, as well as the endorsement of NFL quarterback Tom Brady.
Professional esports organization Team SoloMid (TSM) has also suspended a $210 million deal with FTX, Cointelegraph reported. The partnership took place in June 2021 and resulted in the name change from TSM to TSM FTX.
In another hearing held by Judge John T. Dorsey, a lawyer representing the crashed cryptocurrency stated that FTX has “recovered $5 billion in cash and liquid cryptocurrency”, although its liabilities reach USD 8,800 million. In addition, Judge Dorsey approved a petition to keep the names of FTX clients secret for three months.
Around 130 FTX Group companies – including FTX Trading, FTX US, under West Realm Shires Services and Alameda Research – filed for bankruptcy in the United States on November 11, following the “liquidity crisis” and the dramatic collapse of exchanges. of cryptocurrencies.
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