Stadium Branding Curse Hits Miami Heat’s FTX Arena
Several stadiums and arenas signed naming-rights agreements with companies that later found themselves in financial turmoil
The FTX Arena, home of the Miami Heat, has become the latest sports arena hit with the naming-rights curse.
Cryptocurrency platform FTX filed for bankruptcy protection Friday, joining a list of once-highflying companies that ran into financial trouble after signing naming-rights deals for stadiums and arenas. FTX plunged into financial turmoil over the course of a week, leading to the resignation of Chief Executive Sam Bankman-Fried. The company said it would begin a process to review and monetize assets for stakeholders.
Mr. Bankman-Fried apologized in a series of tweets on Thursday, adding that he should’ve done better.
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The FTX brand has been widely visible in the sports world in recent years. The company signed deals with celebrities and athletes who either invested in FTX or were brand ambassadors for the company.
But signing an agreement to sponsor the Miami Heat’s arena was perhaps FTX’s highest-profile sports deal.
In a joint statement late Friday, Miami-Dade County and the Miami Heat said they were ending their naming-rights deal with FTX.
“The reports about FTX and its affiliates are extremely disappointing,” the county and team said. “Miami-Dade County and the Miami Heat are immediately taking action to terminate our business relationships with FTX.”
FTX didn’t respond to a request for comment.
Here’s a list of stadiums and arenas that signed naming-rights agreements with companies that later found themselves in financial turmoil.
FTX Arena
 The FTX brand has been widely visible in the sports world in recent years.Photo: Eric Espada/Getty Images
FTX and Miami-Dade County signed a naming rights deal in 2021 that would provide the county and the Heat with $135 million over 19 years. FTX said it would also pay an additional $5 million toward community causes. The Heat and the county said late Friday they were cutting ties with FTX and will be working together to look for a new naming-rights partner for the arena.
The Heat’s home venue had been called American Airlines Arena from its opening in 1999 through last season.
Enron Field
 The Astros bought the naming rights back from Enron in 2002 for $2.1 million. Photo: Pat Sullivan/ASSOCIATED PRESS
Enron Corp.’s $100 million, 30-year deal signed in 1999 with the Houston Astros was perhaps the most notorious of the failed stadium-naming rights agreements. Enron collapsed in 2001 after its accounting fraud was exposed. The Astros bought the naming rights back from Enron in 2002 for $2.1 million.
Chesapeake Energy Arena
 Chesapeake Energy Corp. signed a naming-rights deal in 2011, but terminated it after filing for bankruptcy. Photo: Kyodo/Associated Press
Chesapeake Energy Corp. signed a 12-year deal in 2011 for naming rights to the home of the Oklahoma City Thunder. Chesapeake terminated the deal as part of its restructuring in 2021 after filing for bankruptcy the previous year.
Wachovia Center
 Wachovia acquired the naming rights to the Wachovia Center for 2003 through 2010. Photo: Kathy Willens/Associated Press
Wachovia acquired the naming rights to the Wachovia Center, home to the Philadelphia 76ers and Flyers, for 2003 through 2010. After the company suffered steep revenue losses during the financial crisis, Wells Fargo & Co. acquired Wachovia. Wells Fargo currently has the naming rights for the arena.
Adelphia Coliseum
 Adelphia Communications Corp., the sponsor of the stadium, filed for bankruptcy in 2002. Photo: Andy Lyons/Allsport/Getty Images
The home of the Tennessee Titans was known as the Adelphia Coliseum from 1999 to 2002. Adelphia Communications Corp., the sponsor of the stadium, filed for bankruptcy in 2002, and its founders were imprisoned for fraud.
Trans World Dome
 Trans World Airlines owned the naming rights for the Trans World Dome from 1995 to 2001.Photo: James A. Finley/Associated Press
Trans World Airlines owned the naming rights for the Trans World Dome, which used to be home of the then-St. Louis Rams, from 1995 to 2001. TWA went bankrupt in 2001 and was acquired by American Airlines Group Inc.
The National Car Rental Center
 The home of the Florida Panthers was named the National Car Rental Center from 1998 to 2002. Photo: James Baker/Getty Images
The home of the Florida Panthers was named the National Car Rental Center from 1998 to 2002. At the time, National Car Rental was a division of ANC Rental Corp. ANC filed for bankruptcy in 2001, leading to the end of the National Car Rental Center.
PSINet Stadium
 The venue’s name reverted back to Ravens Stadium after PSINet Inc. filed for bankruptcy. Photo: Alex Dorgan-Ross/Associated Press
The home of the Baltimore Ravens was known as PSINet Stadium from 1999 to 2002 after telecommunications company PSINet Inc. acquired the naming rights to the stadium. PSINet filed for bankruptcy in 2001, and the name reverted back to Ravens Stadium.
MCI Center
 The venue was named after MCI Communications Corp. from 1997 to 2006. Photo: JOYCE NALTCHAYAN/AFP/Getty Images
The MCI Center, home of the Washington Wizards and Capitals, was named after MCI Communications Corp. from 1997 to 2006. WorldCom Inc. acquired MCI in 1998. After an accounting scandal, WorldCom filed for chapter 11 in 2002 in what was the largest bankruptcy case in corporate history at the time.
Write to Joseph De Avila at joseph.deavila@wsj.com |