Bankrupt cryptocurrency exchange FTX is seeking to terminate its $135 million, 19-year deal for the naming rights to the arena of the NBA’s Miami Heat. The facility is owned by Miami-Dade County, Florida.
As part of the deal, FTX has already paid $20 million to the county and is due to pay $5.5 million this month. Due to this, the company is seeking to have a judge date the contract’s termination retroactively to Saturday, before the new year.
The county and team also requested the termination of the marketing deal back in November, and both parties put out a joint statement announcing their desire to terminate the deal.
“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,” the statement reads.
FTX’s creditors have until Jan. 13 to object to the cancellation of the arena naming deal and more than 20 other marketing arrangements, including those with Major League Baseball and the National Basketball Association’s Golden State Warriors. A hearing on the request by FTX is scheduled for Feb. 8, according to the Miami Herald.
In November, MLB Commissioner Rob Manfred indicated that “FTX” patches would not be present on umpire uniforms in the 2023 season.
“The FTX development has been really jarring. We will proceed with caution in the future,” Mr. Manfred said, according to cryptocurrency news website CoinDesk.