TSM has released a statement after major naming rights sponsor FTX, who signed a $210 million deal with the esports organization last year, has filed for bankruptcy. The team is looking at the “best next steps to protect” their brand, and touted their financial stability.
Cryptocurrency exchange FTX has been in the headlines after the major player in the space filed for bankruptcy. While first reporting pointed towards a potential bailout by rival Binance, that deal fell through after analyzing financials.
Since then, the exchange has been accused of moving hundreds of millions of dollars in assets in “suspicious circumstances” as CEO Sam Bankman-Fried apologized to the platform’s users for “ending up here.”
“Hopefully things can find a way to recover,” he said on November 11 after filing associated FTX brands for bankruptcy. “Hopefully this can bring some amount of transparency, trust, and governance to them.”
In the esports world, all eyes turned to TSM. The major North American organization penned what was described as the “largest [deal] in esports history” when they signed a $210 million, ten-year naming rights agreement with FTX.
The organization is aware of the FTX collapse, it said in a statement on November 12, while touting its own financial stability even as their major sponsorship collapses.
“Along with the rest of the world, TSM has been closely following the situation surrounding FTX,” the organization said. “We have no insight into the matter other than what has been reported publicly. We are currently consulting legal counsel to determine the best next steps to protect our team, staff, fans and players.
“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 year in 2023.”
TSM previously alluded to plans of building “a strong footprint within Europe” along with its other global expansions, with FTX’s backing going some way towards that goal. The company has not clarified if these efforts can be continued.
The esports team was also not FTX’s only involvement in esports. The exchange penned a seven-year deal with the LCS in August 2021, and also had a one-year agreement with FURIA. Neither have commented on the bankruptcy.