❘ Posted: 2022-11-13T03:32:18
❘ Updated: 2022-11-13T03:32:27
TSM released a statement after major naming rights sponsor FTX, which signed a $210 million deal with the esports organization last year, filed for bankruptcy. The team is studying the “best next steps to protect” their brand and has touted their financial stability.
Cryptocurrency exchange FTX made headlines after the major player in the space filed for bankruptcy. During the first report pointed to potential bailout by rival Binancethis agreement failed after analyzing the financial data.
Since then, the exchange was accused of moving hundreds of millions of dollars in assets under ‘suspicious circumstances’ while CEO Sam Bankman-Fried apologized to platform users for “end here.”
“Hopefully things can find a way to recover,” he said Nov. 11 after filing for bankruptcy with related FTX brands. “I hope it brings them some transparency, trust and governance.”
In the esports world, all eyes have been on TSM. The major North American organization wrote what has been described as the “greatest [deal] in the history of esports” when they signed a ten-year, $210 million naming rights deal with FTX.
The organization is aware of FTX’s collapse, it said in a Nov. 12 statement, while touting its own financial stability even as its main sponsorship collapses.
“Along with the rest of the world, TSM has been closely monitoring the situation surrounding FTX,” the organization said. “We have no idea of the matter other than what has been publicly reported. We are currently consulting with legal counsel to determine the best next steps to protect our team, staff, fans and players.
FTX’s deal with TSM included naming rights and a prime spot on the team’s jersey.
“To be clear, TSM is built on a solid foundation. We are stable and profitable, and we continue to forecast profitability for this year, next year and beyond. We look forward to a great 2023.”
TSM has previously hinted at plans to build “a strong footprint in Europe” as well as its other global expansions, with FTX’s support going in the direction of this goal. The company did not say whether these efforts can be continued.
The esports team wasn’t FTX’s only involvement in esports, either. The exchange signed a seven-year deal with the LCS in August 2021, and also had a one-year deal with FURIA. Neither has commented on the bankruptcy.