Since the FTX and Sam Bankman-Fried affair that brought the largest exchange platform to bankruptcy, the dramas and fallout have been growing. The entire crypto market has plunged into the red and more than 130 companies are already affected. That’s right, sports brands, athletes and properties with any relation to the Exchange are not spared.
Miami Arena turns its back on FTX after its fall
In sports, it’s all about sponsorship. The way the various sports reach millions of fans around the world appeals to most companies. In 2021, when FTX was at its peak, CEO Sam Bankman-Fried entered into several sports partnerships.
He signed a 19-year, $135 million contract with a sports venue in downtown Miami, the famous FTX Arena (formerly known as American Airlines Arena or AAA). It was to bear the name of the platform until 2040.
FTX made a payment of about $14 million up front. However, the exchange still had to pay $5.5 million in just two months. Approximately $90 million of the total value of the deal is expected to go to the Miami-Dade committee account.
With everything that has happened to the platform, FTX’s sports partners are forced to act as quickly as possible. And, with the ex-billionaire’s influence and reach in various sectors, the damage is reverberating on a grand scale! Unsurprisingly, everything associated with good old Sam is on the verge of dying, as is FTX…
So, last Friday, the Miami Heat basketball club and the Miami-Dade committee said in a statement to take immediate steps to end their partnership with FTX. At the same time, they said they were looking for a new partner.
Miami-Dade County and the Miami Heat are taking immediate steps to end our business relationship with FTX. We will work together to find a new partner for the Arena’s naming rights.
Miami-Dade committee
FTX’s capitulation has not spared the sports sector. SBF’s partners are paying heavily for the blind trust they placed in him. In his heyday, Sam had deals with many sports partners including Shaquille O’Neal, Tom Brady, Stephen Curry, Naomi Osaka, the Golden State Warriors, MLB to name a few. It remains to be seen what dominoes will fall next…
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
