Esports Following the shocking collapse of the cryptocurrency trading platform last week, professional esports organisation Team SoloMid (TSM), formerly TSM FTX, has suspended its $210 million sponsorship agreement with the bankrupt FTX crypto exchange “effective immediately.” Esports
Esports The announcement was made by the American esports organisation in a tweet to its 2.2 million followers on November 16. It added that the choice had been made after “monitoring the evolving situation and discussing internally.”
Esports team TSM suspends
Esports The esports company stated at the time of the $210 million purchase that it will deploy its new resources to all corners of the world by building offices in Asia, Europe, and South America. The $210 million contract was signed in June 2021, which led to the rebranding of TSM to TSM FTX.
TSM also bought FTX Token, FTX’s native token, for $1 million.
This was given to the staff and players
TSM tweeted on November 13 that it was consulting with legal counsel in the wake of FTX’s collapse the previous week in order to “determine the best next steps to protect our team, staff, fans, and players.”
In its most recent release, TSM stated that FTX branding would be removed from TSM’s official name, team and player social media accounts, and jerseys due to its partnership suspension with FTX, adding:
TSM also used the occasion to reassure its investors that, even without FTX’s backing, its balance sheet is still solid and would stay so for the foreseeable future:
TSM is most recognised for their involvement in League of Legends, one of the most popular competitively played multiplayer online battle arena video games. Dota 2, Apex Legends, and Valorant are additional online games that TSM fields players for.
Following FTX’s collapse, companies other than TSM also terminated significant sponsorship agreements with the company.
The Miami Heat of the NBA advanced the situation
The Miami Heat also stated that they are searching for a new naming rights partner for the venue, which was changed to FTX Arena in March 2021 as part of a 19-year, $135 million sponsorship deal.
After FTX declared bankruptcy on November 14, the Mercedes Formula 1 team was another sports organisation to terminate its sponsorship with Sam Bankman-crumbling Fried’s business.
Toto Wolff, the CEO of Mercedes’ Formula 1 team, was quoted as saying in a recent video call that while he still believes in the long-term prospects of blockchain and cryptocurrency, FTX’s collapse served as a textbook illustration of the many vulnerabilities still present in the sector:
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