Story behind the Heat’s new naming-rights deal. Also, when will it become FTX Arena?
AmericanAirlines Arena will soon become FTX Arena, but not just yet.
Although Miami-Dade commissioners approved the 19-year deal worth $135 million for naming rights at the Miami Heat’s county-owned arena March 26 and the NBA also recently approved the switch, the building’s name remains AmericanAirlines Arena as the Heat hosts the Los Angeles Lakers on Thursday night.
There’s no clear timetable for the name change, which will be the venue’s first name change since it opened in 1999 on New Year’s Eve, but Heat president of business operations Eric Woolworth made clear during a video interview this week that the planning behind the arena’s transformation is underway. The naming-rights deal agreed upon by the county and the FTX cryptocurrency exchange “will cover most of the same kind of signage that you saw that American [Airlines] had,” according to Woolworth.
That includes stripping the iconic American Airlines airplane from the roof of the arena in favor of an FTX logo at some point, as FTX CEO Sam Bankman-Fried said during a video interview from Hong Kong (where FTX is based) this week that “I would be looking at the FTX logo as a pretty good guess at what might show up there.” The company’s logo is also expected to be on the Heat’s court, but Kia will remain as the logo on the court for now until the switch is made.
“In terms of when you’re going to start to see things,” Woolworth added, “Sam and I would both tell you that we’re going to make sure we do this right. So we’re not going to rush and get something out there just for the sake of getting something out there. It would be great if we could get some things that people can see toward the end of the season and into the playoffs. But it will be the start of next season before we see the entire array of partnership assets unveiled.”
In tandem with the county’s recent agreement with FTX, the Heat announced Wednesday it has also entered a long-term partnership with FTX.us, the company’s U.S.-based exchange that launched in 2020. The partnership makes FTX.us “the official and exclusive cryptocurrency exchange partner of the Miami Heat.”
In a press release issued by the team to announce the news, the Heat said its home building located in downtown Miami will be known as FTX Arena “starting with the 2021-22 NBA season.”
The release also describes FTX.us as “a leading US exchange where customers can trade Bitcoin, Ethereum and other cryptocurrencies safely and securely. The company seeks to offer US traders a platform that inspires their loyalty, as well as expand access to a new generation of financial tools and services to people around the US and across the world. FTX.us believes that everyone needs a seat at the table when it comes to the future of money.”
The partnership will give FTX.us “prominent in-arena signage, hospitality, association with Heat digital content series, promotions, contests, community engagements and more.”
“FTX.us is an exciting, young company in an emerging category of the financial services industry that continues to grow at lightning speed, and we are ecstatic to welcome them with open arms to the Magic City,” Woolworth said in a statement. “This is a ground-breaking, first of its kind partnership in our industry that will draw global attention. And, while we pride ourselves on blazing a trail, we acknowledge that Mayor Daniella Levine Cava’s pragmatic approach and strong leadership has further bolstered the robust, enduring public/private partnership between the Heat and Miami-Dade County.”
The Heat negotiated the naming-rights deal with American Airlines in the 1990s, but Miami-Dade exercised its option to take over naming rights in 2018 in exchange for guaranteeing the team a $2 million yearly payment starting in 2020.
Finding a new sponsor for the arena was an uphill climb for Miami-Dade, sparking tension with the Heat in recent months. But Woolworth said the recent election of Levine Cava helped smooth over friction between the two sides.
“We’ve obviously had some ups and downs,” Woolworth said of the Heat’s relationship with the county. “I would say last fall, the county’s efforts to sell the naming rights were somewhat in disarray. But Mayor Levine Cava’s election was a real turning point. Within the first couple weeks of having been elected, she and I sat down and we had a very transparent and honest conversation about why things were the way they were and what needed to happen to get the county’s efforts on track. I think she recognized immediately that we had to be involved.”
Woolworth said the result was a “win-win-win” situation.
“The county has a great deal, the Heat has its own marketing partnership with FTX.us and FTX gets its name on one of the most successful and iconic arenas in the world and a partnership with us,” Woolworth said, “who has got over 25 million social media followers and are a real platform to make sure the world knows who FTX is in short order. I think we created that win-win-win situation by working together as partners.”
A 19-year agreement is a long deal, but Woolworth said the Heat plans to use the arena for the entirety of that time and Bankman-Fried said he feels confident in FTX’s “long-term positioning” after launching just two years ago.
The Dallas Mavericks have been accepting Bitcoin as a method of payment for game tickets and merchandise for almost two years, but Woolworth said there are no current plans for the Heat to begin accepting cryptocurrency as a form of payment at the arena.
Miami-Dade’s agreement brings the NBA its first arena sponsor from the cryptocurrency industry.
Bankman-Fried said Miami’s recent enthusiasm for the cryptocurrency movement, specifically City of Miami Mayor Francis Suarez suggesting his city should start offering bitcoin as a welcomed currency, factored into his decision target the Heat’s arena as one he wanted his company’s name to be tied to.
“It mattered. I think a piece of that is Mayor Suarez,” Bankman-Fried said. “I think a piece of that is the county leadership as well between the mayor and the commissioners, and a piece of that is the team and the league. I think all of those pointed really strongly in a really exciting direction there. In the end, we want to have partners who are excited to work with us and are excited about the potential of our business.”
This story was originally published April 7, 2021 at 9:05 AM.
