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TSM could pause some esports divisions

According to the latest information about TSM, the organization could be experiencing a financial crisis. Due to the crisis,... Maria | 1. April 2023

According to the latest information about TSM, the organization could be experiencing a financial crisis. Due to the crisis, TSM could stop competing in several esports arenas.

The financial crisis of the video game industry is affecting large organizations. Days ago, the news of the great losses that FaZe Clan is reporting was released; on the other hand, Astralis is having problems in the stock market, and Heroic has had to ask its shareholders for extra money to stay operative.

According to reports, another major esports organization like TSM joins the crisis.

TSM could pause some esports divisions

According to information provided by Sports Business Journal, Team SoloMid, better known as TSM, is going through one of its toughest financial difficulties.

Consequently, several esports teams of the organization will be withdrawn from the competitive scene. The esports activities of the titles that could enter the pause are:

  • VALORANT
  • Apex Legends
  • League of Legends

The LoL squad is considered the organization’s flagship team; the team is currently franchised in the LCS, the largest LoL tournament in the Americas.

TSM’s financial problems

TSM, in 2021 signed a sponsorship deal with FTX, one of the largest cryptocurrency platforms at the time. The deal involved rights to the organization’s name in exchange for $210 million. After that agreement, everything was going well for the organization; however, at the end of 2022, the platform announced its bankruptcy and cessation of activities. According to the information published, the bankruptcy of its main sponsor was a hard blow to TSM’s economic stability.

The curious thing is that TSM stated the bankruptcy of FTX, stating that the organization was built on a very solid foundation. They also commented that they were stable, predicted profitability for 2023, and anticipated a great year.

The North American organization could come out of this crisis. However, everything points to the suspension of the operations of its numerous esports teams as the most practical solution to solve the crisis for the time being.

2023 was a difficult year for TSM

2023 is far from being as stable and profitable as the organization predicted a few months ago. This year for TSM has started in the worst possible way, and the measure of pausing the teams’ activities would not be the first they have taken in search of a better north. The year has just begun, and the chaos at TSM is abysmal.

Walter Wang, TSM’s Director of Operations, has stepped down after six years, as has the successful Rainbow 6 team, with which TSM won a Six Invitational, a Major, and several regional tournaments.

Header: TSM