Nov. 12 (UPI) — The NBA’s Miami Heat says it is seeking to terminate its partnership with FTX after it was revealed the cryptocurrency giant would be entering bankruptcy proceedings.
FTX, a platform that allows investors to trade cryptocurrencies online, has made billions since Sam Bankman-Fried founded the company in 2019. Last year it entered into a $130 million partnership with the Heat and Miami-Dade County to change the name of the American Airlines Arena to the FTX Arena.
On Friday, however, Bankman-Fried announced that FTX would enter bankruptcy proceedings after it was revealed the company lacked the cash necessary to back up investors’ holdings.
The 19-year deal between FTX, the Heat and the county required the company to pay $20 million for the first two years. While county officials confirmed this week they had received the $20 million, they are concerned that FTX now won’t be able to cover the next $5.5 million payment, which is due on Jan. 1.
“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 relationship with FTX,” read a joint statement posted to Twitter by the Miami Heat on Saturday.
The FTX Arena will retain its name for the time being, but according to the joint statement, the parties “will be working together to find a new naming rights partner for the arena.”
