According to reports, Samuel Bankman-Fried’s FTX cryptocurrency exchange is only one vote away from winning the naming rights deal in the NBA Miami Heat Arena. The transaction is valued at $135 million and is scheduled to be approved by the Miami-Dade County Commission on March 26.
Miami-Dade earns $5 million per year
According to a report, as part of the agreement, the venue known as the “American Airlines Arena” for two decades will be renamed the “FTX Arena.” In return, Miami-Dade, which controls the naming rights of the building, will receive “FTX’s undisclosed annual payment.”
However, as part of the deal, Miami-Dade is expected to “pay $2 million a year to the Miami Heat, which is an option the county exercised in 2018 to find the next sponsor of the arena.” Although officials have not disclosed Miami Dade’s net income, but reporter Joe Pompriano tweeted that the transaction will give the city a net income of $5 million.
FTX goes mainstream
At the same time, the report also explained that this transaction will provide exchanges with an opportunity to showcase cryptocurrencies to mainstream audiences. The report says:
If approved, the agreement will make the NBA the first arena sponsor of the cryptocurrency industry and will inject FTX into Miami’s sports vocabulary when the city’s mayor negotiates with tech executives and champions Bitcoin.
In early February 2021, Bitcoin.com’s news desk reported that Miami City Councillors had voted for Mayor Francis Suarez’s proposal that would enable the city to keep Bitcoin in the vault. The commissioners also agreed with the city’s proposal to accept taxes and salaries in the form of cryptocurrencies.
Once approved, the FTX-Miami-Dade transaction will represent another important milestone for the pro-Bitcoin mayor.
On the other hand, the Miami-Dade and FTX transaction will represent another mainstream action by Bankman-Fried. Before the revelation of the FTX and Miami-Dade agreement, the 29-year-old billionaire had become the second largest contributor to the campaign of US President Joe Biden.
What is your opinion on the upcoming sponsorship agreement between FTX and Miami-Dade? You can tell us your thoughts in the comments section below.
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