How FTX's collapse affects the NBA including Miami Heat's FTX Arena, Golden State Warriors' $10 million partnership, and more

The Miami Heat and Golden State Warriors could be among the sports organizations affected by cryptocurrency company FTX's possible bankruptcy. FTX almost faced a sudden collapse recently. Rival company Binance, the largest cryptocurrency firm, extended help to revive FTX by offering to buy it.

However, the deal fell through after Binance deemed the problems to be beyond their control.

"As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of http://FTX.com," Binance stade in a statement on Twitter.

FTX was on the rise as one of the premier cryptocurrency companies in the world. They struck deals with sports athletes and organizations, building a hefty reputation for themselves. They were associated with teams like the Miami Heat and Golden State Warriors in the NBA.

The Heat had their arena renamed after the company before the 2021-22 NBA season from American Airlines Arena to FTX Arena. FTX had the naming right for 19 years worth $135 million. Meanwhile, they struck a partnership with the Warriors as their official cryptocurrency platform and NFT marketplace beginning in 2022.

How does FTX's collapse impact Miami Heat and Golden State Warriors?

The Miami Heat saw their arena renamed just over a year and a half ago after FTX bought the naming rights to their home building. The franchise may have to rename its arena amid FTX's uncertain future. Their deal was a 19-year-long agreement, so the Heat could look to recover money through litigation. Miami will need to find a new company willing to buy the naming rights for their home arena.

Meanwhile, the Golden State Warriors will have to look for new sponsorships and pair up with another cryptocurrency company if they are keen to maintain their NFT marketplace. To recoup their payments, they will have to recover those through litigation akin to the Heat. It was an additional sponsorship deal, so the Warriors may not be as affected as the Heat if FTX files for bankruptcy.

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Steph Curry is among athletes who could be impacted by FTX's potential collapse

Warriors star Steph Curry was among the athletes who had invested in FTX. Curry was made the company's Global Ambassador just over a year ago for an equity stake. His charity, "Eat.Learn.Play." was also a part of this arrangement. With the company at risk of bankruptcy, the equity shares of Curry and fellow celebrities are now deemed worthless.