TSM and FURIA suspend partnerships with FTX

Last week, one of the biggest esports sponsors collapsed. FTX, one of the largest cryptocurrency exchanges in the world has filed for bankruptcy, leading its sponsored teams FURIA and TSM to suspend their deals with the company.  

FURIA suspends FTX sponsorship

Back in April of this year, FTX signed a one-year deal with a Brazilian esports org FURIA that was worth $3.2 million. However, the sudden downward spiral that eventually made FTX declare bankruptcy caused FURIA to cancel the sponsorship, without disclosing how much the organization already received from FTX.

On November 11, FURIA’s Co-CEO Andre Akkari announced that it has canceled FTX sponsorship via a Twitter post:

“FURIA closely monitors the activities of all its partners, always attentive to the possibility of being able to contribute with them, but prioritising our supporters, our fans!

The current case of our sponsor crypto exchange, which is in the global news, serves as an example. After a conversation with our contacts at the company, it was decided that FURIA will discontinue the FTX exhibition, removing the brand from all its spaces.”

The decision took effect immediately, as FURIA completed the rest of their IEM Rio Major matches without the FTX logo on team jerseys.

TSM follow in FURIA’s footsteps

Following the crypto exchange’s file for bankruptcy, the North American esports organization TSM has too announced that it has suspended its $210 million naming rights partnership with FTX. The deal was made in June of last year, marking one of the largest ever publicly disclosed esports sponsorship deals.

Concequently to the suspension of this deal, TSM FTX has reverted back to its own name TSM. This effect can also be seen on all of TSM’s social platforms and the FTX sponsor logo on the team’s jersey has also been removed. TSM has ensured fans that it can operate without FTX’s sponsorship, claiming that the organisation will be profitable this year, next year, and beyond.

Careful with crypto sponsorships

Founded in 2019, FTX quickly became a big player in crypto and rose to fame along with the crypto popularity back in 2020-2021. To promote its cryptocurrency exchange, the company used FOMO tactics and even hired multiple notable personalities, including superstar athletes such as Tom Brady and Naomi Osaka. Now, along with FTX, some of these figures are now facing a class-action lawsuit claiming that consumers were defrauded into investing.  

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FTX has sponsored multiple esports events during its peak, including the 7-year deal with LCS. Looking at the collapse of FTX along with its major deals, esports organisations should learn to weigh out the pros and cons before getting into lengthy contracts with crypto companies, as they could have a potential impact on the team’s operating plan.

Header: TSM, FURIA, FTX