Esports giant Team SoloMid (TSM) has suspended its 10-year, $210 million naming rights deal with defunct crypto exchange FTX. The organization announced its decision in a statement on Twitter on Wednesday.
TSM, one of the largest esports organizations, said it will no longer feature FTX branding on its social media accounts and player jerseys. The organization noted that the process of removing FTX branding might take some time since “some social platforms have made changes to their product features.”
TSM signed the multi-year agreement with FTX in June 2021. It’s regarded as the largest known sports deal in crypto history. Despite FTX’s blowup and the failed deal, TSM said that it hasn’t been affected by it.
“TSM is a strong, profitable and stable organization. We forecast profitability this year, next year and beyond. The current situation with FTX does not affect any part of TSM’s operating plan, which was set earlier this year,” the organization said.
TSM’s decision to end its partnership with FTX comes following the revelations that it had funneled customer funds to its sister crypto trading firm, Alameda Research, which it lost in risky bets. This resulted in a $10 billion hole in FTX’s balance sheet. Bankruptcy followed, which included Alameda and another 130 FTX Group companies.
TSM joins a flurry of sports teams and organizations that have tried to distance themselves from the bankrupt exchange. NBA team Miami Heat announced last week that it has terminated its $135 million sponsorship deal with FTX, which included naming rights to the team’s arena.
Golden State Warriors, last year’s NBA champions, had a commercial relationship with FTX that it suspended last week. The deal included in-arena promotions and advertisements. The Mercedes Formula One Team has also severed its ties with the disgraced exchange.
Other companies that have ended their relationships with FTX include GameStop (NYSE:GME), which had a pilot gift card partnership in the pipeline. Visa (NYSE:V) also departed in the wake of the chaos. They were supposed to issue FTX-branded debit cards in 40 countries around the world.
TSM is one of the largest esports organizations in the world. Their decision to suspend their partnership with also FTX shows how negatively the situation is viewed in the gaming and entertainment industry.
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Source: Cryptocurrency - investing.com
