Miami-Dade, one of the most populous counties in the US and home to the NBA team Miami Heat, has successfully canceled its partnership with FTX after the company collapsed in November.
According to a report by the Miami Herald, a federal judge has ruled that the naming rights agreement between the two parties at the FTX Arena will be terminated immediately. In June 2021, the two parties signed a 19-year deal worth $135 million for FTX to be the naming rights partner of the home of the three-time NBA champion, the Miami Heat.
However, after alarming revelations about FTX’s finances and criminal fraud charges brought against CEO Sam Bankman-Fried in November, Miami-Dade immediately took legal action to sever business ties with the now-bankrupt company.
On Wednesday, January 11, the request was finally approved, resulting in the immediate removal of FTX brand representation from the Heat’s home arena.
According to the joint statement by the leadership of Miami-Dade and the hot basketball team, aggressive efforts to find another name partner for the arena as soon as possible. In the meantime, the ground will be called the Miami-Dade Arena.
FTX Loses Another Partnership
The termination of FTX’s sponsorship deal with Miami Dade is just the latest to make headlines following the spectacular collapse of the $32 billion crypto empire in November.
On November 11, the Mercedes AMG Petronas F1 team announced the suspension of its partnership with the crypto exchange. Although the Formula 1 team initially showed some form of support for the defeated crypto company, they later reversed their position, ending their partnership and removing the FTX brand name from their racing cars and other related assets.
It is expected that the coming months will be filled with similar events as the FTX crisis is still far from resolution. Late last year, the once powerful crypto company filed a motion seeking the immediate termination of more than 20 marketing deals, including FTX Arena’s current naming rights agreement.
Other popular deals on the list include a sponsorship deal with NBA champions Golden State Warriors and an ambassador deal with Brazilian fashion icon Gisele Bündchen.
How the Crypto Market Is After the FTX Collapse
After the crash of the FTX exchange last year, the crypto market suffered heavy losses, with a peak value of more than $180 billion. However, there has been a steady market recovery in recent weeks.
Just yesterday, the market leader and premier cryptocurrency, Bitcoin, traded above $20,000 for the first time after FTX’s collapse. Although this does not mean that the storm is over, it can be interpreted as a sign of a future price rally in the coming months.
In the last 24 hours, Bitcoin has gained 11%, reaching a value of $20,871.72, according to data by CoinMarketCap. The 24-hour trading volume is $40,609,971,140, while the total market capitalization is $40,609,971,140. $401,860,462,376.
BTC trading at $20,886 | Source: BTCUSD Chart on Tradingview.com.
-Featured Image: Miami Herald, Graphics from Tradingview.com