TSM Suspends $210 Million FTX Partnership

TSM Halts FTX Partnership

Team SoloMid (TSM), a leading esports organization, has suspended its $210 million naming rights partnership with the now-defunct crypto exchange, FTX. This decision was announced as part of TSM's efforts to remove FTX branding from its social media and player jerseys. The transition might take some time due to changes in social media platform features.

Impact on Sports Sponsorships

The TSM-FTX agreement, initiated in June 2021, was the largest known sports sponsorship deal in crypto history. Despite FTX's collapse, TSM remains unaffected financially and continues to project profitability for the upcoming years. The move to suspend the partnership follows FTX's bankruptcy, which included significant financial mismanagement involving Alameda Research.

Broader Repercussions in Sports

TSM is not alone in distancing itself from FTX. The Miami Heat terminated its $135 million sponsorship deal with FTX, which included arena naming rights. Similarly, the Golden State Warriors and the Mercedes Formula One Team have cut ties, halting promotional and advertising collaborations with FTX.

Other Companies Sever Ties

Beyond sports, various companies have also ended their engagements with FTX. GameStop had a pending gift card partnership, and Visa planned to issue FTX-branded debit cards across 40 countries. Both organizations have since withdrawn from these initiatives.

Implications for the Industry

TSM's suspension of its deal with FTX underscores the negative perception of FTX's downfall in the gaming and entertainment sectors. This situation highlights the broader implications for partnerships within the crypto industry, especially in sports and entertainment.