The Miami Heat terminated their 19-year naming rights deal with FTX a year after agreeing to replace American Airlines as the official brand of their home arena. It was a small amount compared to the $700 million that will be paid to Anschutz Entertainment Group over the next 20 years to replace Staples as the brand associated with Lakers and Kings home games.
The stadium deal was just one of many dominoes that fell in Miami. FTX CEO Sam Bankman-Fried and the Mayor of Miami wanted to turn Miami into a global epicenter for cryptocurrencies. FTX moved its U.S. headquarters to Miami due to the fact that everything wasn't on the up and up.
At the contract signing, FTX paid only 14 million of the $135 million arrangement, but they still owe the Heat and the city of Miami something. In the event of a default by the company, they would have to pay contract fees within 60 days. FTX owes $16.5 million over the next three years and the county has the right to charge 12 percent interest until the payments are made.
Naomi Osaka lost a lot due to FTX's collapse. The Wizards and their G League affiliate did not take as big of a hit as the Heat, but their partnerships evaporated as a result. Consumers will not follow athletes off a cliff if this debacle is any indication. When they say they aren't experts, they are often being honest.
All Rights Reserved © 2024
