Back in 2021, a popular cryptocurrency exchange named FTX purchased the naming rights to the basketball arena that the Miami Heat call home.
In recent days, the company has come under incredible controversy and accusations of mismanaging money from investors, and on Friday, the company did what many expected it would do by filing for bankruptcy.
As a result, there are many who now believe that the Heat will have to go through another process of finding a company that will own the naming rights to their arena.
Anthony Chiang of the Miami Herald broke down a bit of what has thus far taken place regarding FTX.
“Amid the liquidity crisis of cryptocurrency exchange FTX and the company’s very uncertain future, the naming rights have again come into question,” he wrote.
“The Heat on Wednesday said when asked about those questions, ‘It is far too premature for us to comment.’
“Binance backed out of its plans to acquire FTX this week amid reports that the company ‘mishandled customer funds and alleged US agency investigations.'”
It’s an ugly situation and brings the entire makeup of cryptocurrency back into question. Investors in both the crypto and stock markets have suffered major losses over recent months as inflation, global uncertainty and many other factors have led to massive dips in values of even some of the most powerful companies.
Given all the economic uncertainty at the moment, it may take the Heat some time to find an attractive partner to purchase their arena’s naming rights, if that is indeed what ends up taking place.
As some of the most valuable companies in the world have begun laying off massive amounts of employees, it’s hard to imagine that there’s a company out there that would spend millions simply to have its name on an arena.
However, that is ultimately probably what will happen.
Interestingly, the Heat are not the only team to play in an arena currently named after a company related to the cryptocurrency industry. The Los Angeles Lakers had their arena renamed to Crypto.com Arena last year. Fans of the storied franchise mourned when the arena lost its famous name.