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A comment on FTX to file for U.S. bankruptcy, CEO resigns. Parent comment

Re:FTX to file for U.S. bankruptcy, CEO resigns by paxys on Friday November 11, 2022 @12:52PM (#33564111)
Two possible outcomes:

- They miss their next payment and the contract is terminated. The arena owners find a new sponsor.

- The naming rights are considered an asset of FTX and are sold off during bankruptcy proceedings to recover cash. The buyer puts their own name on the arena for the rest of the contract term.

Considering naming rights are sold for such lengthy terms (20 years in FTX's case) it is incredibly common for companies to go under or get bought out in the middle of it.

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Re:FTX to file for U.S. bankruptcy, CEO resigns by pbreit on Friday November 11, 2022 @01:07PM (#33564381)
Both of those are unlikely. The whole point of bankruptcy is to mitigate things like contract terminations. Further, the bankruptcy court will have little, if any involvement in the eventual sale of the naming rights to a new sponsor.
[ Parent | on HN ]
Re:FTX to file for U.S. bankruptcy, CEO resigns by paxys on Friday November 11, 2022 @01:23PM (#33564612)
> The whole point of bankruptcy is to mitigate things like contract terminations

Except in this case both parties involved will want the contract to be terminated.

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