Miami Changes the Name of the FTX Arena Stadium Back to the Miami Heat Arena, This is the Reason

Jimmy Butler is now back playing in the stadium under the name Miami Heat Arena. (photo: Twitter @miamiheat)

JAKARTA - Miami-Dade County will immediately begin removing the FTX advertising brand from the arena of NBA club Miami Heat after awarding rights from a United States bankruptcy judge in Delaware on January 11.

According to reports, Associated Press, Regional officials negotiated in 2021 a deal of 135 million US dollars with crypto exchange FTX to rename the Miami Heat arena rights as FTX Arena until 2040. Multiple entrances, arena roof, basketball court, security polo shirts, as well many of the cards employees use to access facilities bear the FTX logo, after the contract.

Following FTX's bankruptcy filing, officials at Miami-Dade filed a motion on November 22 to end the naming rights agreement. As part of the deal, the Heat will receive $2 million annually starting in June 2021. January 1 is the due date for the final payment, which should total $5.5 million.

Sports sponsorship deals are one of FTX's main marketing strategies. One of the partnerships includes a deal with the Mercedes-backed international Formula 1 racing team, the naming rights to Cal Memorial Stadium in Berkeley, California, as well as the backing of NFL quarterback Tom Brady.

According to a Cointelegraph report, professional esports organization Team SoloMid (TSM) has also suspended a $210 million deal with FTX. The partnership took place in June 2021 and resulted in a rebranding of TSM to TSM FTX.

In another hearing held by judge John T. Dorsey, an attorney representing the crypto exchange that collapsed stated that FTX had “recovered US$5 billion in cash and liquid cryptocurrencies.”, even though its liabilities amounted to US$8.8 billion.

In addition, Judge Dorsey approved a request to remain anonymous for three months on the name of an FTX client.

About 130 companies in the FTX Group — including FTX Trading, FTX US, under West Realm Shires Services, and Alameda Research — filed for bankruptcy in the United States on November 11, following a "liquidity crisis" and a dramatic collapse of crypto exchanges.