Following the recent issues surrounding the crypto exchange firm FTX, Miami-Dade County has approached the court, demanding a legal provision to remove the name of the bankrupt company from the logo of their sports arena.
The arena is where the NBA’s famous team Miami Heats plays their home matches. As per the latest update, the county has approached the Delaware court and has filed a petition that demands an immediate end to the deal the county has made with the company FTX.
As per the deal, the naming right of the arena is granted to the company for a 19-year long period and the deal is worth $135 million.
The case regarding the bankruptcy of the firm FTX is currently under procession in the Delaware court. The county also filed its petition in the same court.
In their petition, the county has put forward the argument which said that continuing the agreement with the company that is now facing legal action can lead to severe hardships for the county and also that it would affect the efforts of the officials to find an appropriate sponsor for the arena too.
The logo of the company FTX is present in many places associated with the arena. The logo appears next to the logo of the arena and not just there, but it is also seen decorating the basketball court and also the jersey of the Miami Heat.
Not just the logo but there had also been a commercial that promoted FTX which featured Udonis Haslem, a player who was part of the Miami team for a long period of time. The commercial ran for months during the local game broadcasts.
After entering the deal with Miami-Dade County, FTX has already paid the county a sum of $20 million. As of January, the company has made due $5.5 million in its deal.
As per the conditions of the deal, any default on the part of the company would have them pay the county for three years. The amount demanded is estimated to be around $17 million. The county has also demanded this amount to be paid to them by the company on their petition.
FTX is a Bahamas-based cryptocurrency exchange that was established by Sam Bankman-Fried in 2019. The company which was valued at around $ 30 billion early this year is currently under investigation by the Department of Justice and the Securities Exchange Commission.
The company was accused of mishandling the funds and some liquidity issues faced by the company contributed to the sudden decline in the value of the company, which eventually led to its bankruptcy.
The founder of FTX, Sam Bnakerman-Fried was very successful in taking the company to new heights just years after its launch. Many believed him to be a charismatic businessman who could bring in good changes in the field of crypto.
With the help of well-planned branding and constant support of the press, the popularity of Sam and his company began to rise, making many popular figures and names to associate with the FTX.
Just like the Miami Heat, FTX had made many different associations with multiple other sports teams. As per the available reports, in the year 2021 alone, FTX had made deals with different spot teams like Golden State Warriors and the Washington Lizards.
Both teams are a part of the popular basketball league NBA. They have also entered deals with the TSM and also the NHL team Washington Capitals. Just like the case with the county arena, FTX was also a part of multiple title sponsors like the first season of MLB Home Run Derby X, the tournament FTX Road to Miami, and the FTX Crypto Cup which were associated with the Champions Chess Tour 2022.
The company is currently under investigation by the Royal Bahamas Police Force after its reported collapse. There are also reports from different agencies that an investigation had been launched by the United States Attorney for the Southern District of New York on November 14.
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