Here’s How Much FTX Owes Miami After Arena Sponsorship Cancellation
FTX owes Miami-Dade County, the owners of the facility formerly known as FTX arena, $16.5 million, according to a contract signed last year between the bankrupt exchange.
According to the contract, the $135 million deal is amortized over 19 years. The contract also says that in the event of a default by FTX, which includes an “insolvency event”, the exchange will be liable to pay three years of contract fees, within 60 days. After paying $14 million during signing of the contract, FTX will now be liable to pay $16.5 million for the subsequent three years. If the payment is not paid within ten business days, the County says it has the rights to charge 12% interest per anum until the payment is made.
In the first year, the exchange paid the County $14 million, while between years 2-4, it owes an annual fee of $5.5 million. In year 5, it owes $6 million, and by year 10, it owes $7 million, then $8 million by year 19.
Late Friday, the County and the Miami Heat announced that they had terminated the relationship with FTX because of its bankruptcy.
« 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 relationships with FTX, and we will be working together to find a new naming rights partner for the arena, » a press statement issued Friday reads.
FTX will also be liable for the removal of all signage and decorations in the arena.
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