But I am not convinced the stadium authority, for instance, could ethically retain the unearned portion of the contract monies as long as it carried through on its commitment to use the FTX name for the next decade.
That’s not really how naming rights deals are structured. IANAL, but the sponsor doesn’t pay all the money upfront, but a yearly tranche of money over the terms of a deal (typically 10- 20 years). I doubt Miami will keep collecting now, but I suppose it depends on the contract whether they’ll be owed anything in bankruptcy.
Correct, but it’s likely that the stadium authority received compensation in advance rather than in arrears. E.g., on day 1 it received $10MM which it “earned” through the year by keeping the name on, then gets another $10MM on day 366 which it was to earn from days 366 to 730...
So like some grantees, it has likely received payment that had not been earned at the time of the insolvency.
That’s not really how naming rights deals are structured. IANAL, but the sponsor doesn’t pay all the money upfront, but a yearly tranche of money over the terms of a deal (typically 10- 20 years). I doubt Miami will keep collecting now, but I suppose it depends on the contract whether they’ll be owed anything in bankruptcy.
Correct, but it’s likely that the stadium authority received compensation in advance rather than in arrears. E.g., on day 1 it received $10MM which it “earned” through the year by keeping the name on, then gets another $10MM on day 366 which it was to earn from days 366 to 730...
So like some grantees, it has likely received payment that had not been earned at the time of the insolvency.