New deal with FTX comes with some twists

Arena name change coming next season — however, no cryptocurrency will be accepted

As if this pandemic-reconfigured NBA season wasn’t confusing enough, the Miami Heat announced Wednesday that the team has entered into a long-term partnership with FTX.us, but the company will not become presenting title sponsor of the team’s arena until next season.

In addition, Heat President Eric Woolworth said there are no plans at the moment by the team to accept cryptocurrency as a form of payment, even with FTX on Wednesday named the Heat’s “Official and Exclusive Cryptocurrency Exchange Partner.”

So, for the short term, AmericanAirlines Arena it remains, even with the airline’s naming-rights agreement having expired over a year ago.

And for all its value, Bitcoin won’t get you in to a game at 601 Biscayne Boulevard.

Woolworth and Sam Bankman-Fried, CEO of FTX.us, this week addressed the 19-year $135 million agreement by the company with Miami-Dade County for the naming rights, as well as the Heat’s marketing partnership that was formally announced Wednesday.

(Some questions and answers shortened for clarity and succinctness.)

Q: Will the Heat be accepting, in any form, cryptocurrency going forward? Woolworth: “We do not have those plans at the moment. We will see what happens over time. But at least initially, that is not in the plans.”

Q: Would FTX like to see the Heat eventually accept cryptocurrency, in light of FTX Arena becoming the facility’s name? Bankman-Fried: “Absolutely. It’s going to have to be, if it happens, a partnership and would have to be done in such a way that it’s a really good experience for fans.”

Q: The naming-rights agreement with Miami-Dade is 19 years. Do the Miami Heat

plan to be at the facility, to become known as FTX Arena, for the entirety of the agreement? Woolworth: “That’s the remainder of our term and the agreement with the county, so yes.”

Q: Will FTX possibly evolve into a different product during the 19-year term of the agreement? Bankman-Fried: “Things may change. What our priorities are might change to some extent. And we’re going to have to keep adapting . . . . All the technology we’ve built can support trading of pretty much any type of financial asset.”

Q: What will be the presence of FTX be inside the arena? Woolworth: “The naming rights deal between the county and FTX will cover most of the same type of signage you saw that American had. The Miami Heat’s marketing partnership with FTX.us will also include a lot of our digital assets, a lot of community involvement.”

Q: When will those changes come into view?

Woolworth: “In terms of when you are going to start to see things, Sam and I would both tell you, 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 can get some things the people can see toward the end of this season and into the playoffs, but it will be the start of next season before we see the entire array of the assets unveiled.”

Q: When does the arena name change, per the team? Woolworth: “I don’t have a firm answer yet.”

Q: Among the iconic elements of the arena, because it is in the flight path to Miami International Airport, is the current airlinethemed roof. What are the plans for that?

Bankman-Fried: “If I were a betting man, I would look at the FTX logo as what might show up there. . . it’s basically a stylized F.”

Q: There have been questions regarding cryptocurrency and money-laundering. Are there concerns of that element creating a certain view of this agreement? Bankman-Fried: “Like any other industry, it’s incumbent on the big players to act in a responsible manner. And I think that there have been a few high-profile lapses from some of those players. But it’s pretty concentrated on a few businesses that have not taken that obligation seriously. And we do that.”

Q: Knowing there are concerns with the industry, were there concerns internally from the Miami Heat?

Woolworth: “I guess the way I would answer that is the county did a very thorough due-diligence search on FTX and all the related companies. We did our own. I think that everyone is satisfied that FTX takes their responsibilities in that regard very seriously.” (The team confirmed after the interview that the NBA has approved the agreement between Miami-Dade and FTX.)

Q: When the FTX.com page is opened, the splash page reads, “It is prohibited to access or use our services (including the FTX Cryptocurrency Derivatives Exchange platform) if you are located in, established in, or a resident of the United States of America.” Why is that? Bankman-Fried: “The big piece of that is that basically crypto is an emerging industry. It’s an industry that didn’t exit 15 years ago and lots and lots of global governments are going through the process right of figuring out what their regular regime is going to be for crypto.” (The company and its products can be accessed within the United States at ftx.us.)

Q: What role did the Heat play in the naming-rights process? Woolworth: ”We’ve been partners with Miami-Dade County since 1997. So it’s an enduring public-private partnership. We’ve obviously had some ups and downs. I would say last fall, the county’s efforts to sell the naming rights were . . . somewhat in disarray, I would say. But I would say Mayor [Daniella] Levine Cava’s election was a real turning point. . . . She recognized, immediately, that we had to be involved.”

Q: Will the Kia logo remain on the court the balance of the season? Woolworth: ”Kia will remain on for now. We had our first meeting this week to work on an FTX Arena logo. So it takes a little while to get that stuff done.”