FTX Logo Removed from Miami Heat Home Arena, Sponsorship Deal Ends

The Miami Heat and Miami-Dade County issued a joint statement hours after FTX filed for bankruptcy, saying they would sever ties with the now-dishonored Bahamian cryptocurrency exchange — effective immediately.

The press statement issued on Friday said:

“The reports about FTX and its affiliates are extremely disappointing. Miami-Dade County and the Miami HEAT are immediately taking action to terminate our business relationships with FTX, and we will be working together to find a new naming rights partner for the arena.”

Photos allegedly circulating on social media show the FTX logo being removed from the arena roof. FTX paid $135 million for the 19-year deal. Under the contract, the $135 million deal was to be amortized over 19 years. The contract also stipulates that in the event of an FTX default, including a “bankruptcy event,” the exchange must pay the three-year contract within 60 days. After paying $14 million at signing, FTX is now obligated to pay $16.5 million over the next three years. If payment is not received within 10 business days, the county has the right to charge interest at 12% per annum prior to collection.

FTX, once one of the world’s largest cryptocurrency exchanges, was in trouble this week after an entire portfolio of companies including the exchange’s U.S. subsidiary FTX US and Alameda Research went bankrupt after a liquidity crisis triggered a domino effect, its quantitative trading company. According to reports, the company’s entire portfolio is now down $10 billion to $50 billion.