Team SoloMid, one of the most successful esports organizations in the world, is known as TSM. But it’s known as TSM FTX, thanks to a $210 million naming rights deal signed in 2021 and the massive FTX cryptocurrency exchange—yes, the same FTX that collapsed into bankruptcy. (opens in a new tab) last week.
The terms of FTX’s sponsorship deal called for it to pay TSM $21 million annually for 10 years, according to the New York Times (opens in a new tab) report, an important role similar to the supporters of the theater in traditional sports. “Taking over a large company will also change in the digital world: this is what sports are to sports, and what crypto is to investment and finance,” said the CEO former FTX Sam Bankman-Fried at the time.
However, in recent days, Bankman-Fried has had a different song about crypto’s role in investment and finance, as FTX’s failure to bring the exchange under strict regulatory scrutiny. (opens in a new tab). After the first time you will experience some symptoms responsible for the problem (opens in a new tab), he resigned as CEO of FTX; It was later reported that Donkey was being flown to Argentina on a private plane, although he told Reuters (opens in a new tab) he is still in the Bahamas, where FTX is located; there are also reports that he is looking to fly to Dubai (opens in a new tab).
The whole thing was wall to wall, that is, many people and organizations ran to rescue or found their bases among the debris. TSM is looking good as far as these things go—the company says it’s “remaining stable and profitable”—but it’s still a long-term deal, and a lot of money isn’t. found, must be done.
“Along with the rest of the world, TSM has followed FTX-related trends,” the org tweeted. “We have no knowledge of this matter beyond what has been made public. We are currently consulting with legal counsel to determine the next best course of action to protect our team. , staff, fans and players.
“To be clear, TSM is built on a solid foundation. It’s stable, profitable, and has predictable results for this year, next year, and beyond. We’re looking forward to next year. much by 2023.”
The loss of the FTX fund won’t hurt TSM that much in the long run. The organization is huge, with more than a dozen teams across games including Dota 2, League of Legends, Valorant, Apex Legends, Fortnite, and Teamfight Tactics, and is valued at $540 million in in Forbes 2022. (opens in a new tab) become the largest sports company operating today.
Currently, the org is in no rush to leave the FTX: Team website (opens in a new tab) it’s still called TSM FTX, although contractual obligations prevent it from dropping the name.