In 2021, a popular cryptocurrency exchange named FTX Trading bought the naming rights to the basketball arena that the miami heat call home.
In recent days the company has been the subject of incredible controversy and accusations of mishandling investors’ money, and on Friday the company did what many expected it to do by filing for bankruptcy.
Press release pic.twitter.com/rgxq3QSBqm
— FTX (@FTX_Official) November 11, 2022
As a result, many now believe the Heat will have to go through another process to find a company to hold the naming rights to their arena.
Antoine Chiang from Miami Herald breaks down a bit of what has happened so far regarding FTX.
“Amid cryptocurrency exchange FTX’s liquidity crunch and the company’s highly uncertain future, naming rights have once again been called into question,” he said. wrote.
“The Heat said Wednesday, when asked about these matters, ‘It’s far too premature for us to comment.’
Binance backed out of plans to acquire FTX this week amid reports that the company “mismanaged customer funds and investigated US agencies.”
It is an ugly situation that calls into question the entire composition of cryptocurrency. Investors in the crypto and equity markets have suffered significant losses over the past few months as inflation, global uncertainty and many other factors have led to massive declines in the values of some of the most powerful companies.
Given all of the current economic uncertainty, it may take some time for the Heat to find an attractive partner to buy the naming rights to their arena, if that’s what ends up happening.
As some of the most valuable companies in the world have begun laying off massive numbers of employees, it’s hard to imagine there’s a company out there that would spend millions just to get its name on an arena.
However, that’s probably what will happen eventually. It seems likely that there is a company out there that would jump at the chance to have the kind of publicity and level of prestige that comes with having its name on a professional sports arena.
Interestingly, the Heat aren’t the only team playing in an arena currently named after a company tied to the cryptocurrency industry. Last year, the Los Angeles Lakers renamed their arena to Crypto.com Arena. Fans of the famous franchise cried when the arena lost its famous name.