TSM’s $210M sponsor FTX gets acquired amid crypto crisis

One of the biggest esports sponsors, Cryptocurrency exchange FTX, is set to be acquired by its rival Binance. This immediately raised questions about the future of TSM FTX, the organization with one of the most lucrative naming deals in esports history. 

Besides the 10-year naming deal with TSM, FTX is also in multi-year sponsorship deals with the LCS and the Brazilian esports organization FURIA. The acquisition marks one of the biggest moves in the crypto industry, and many are asking what impact is this move going to have on the esports space.

Binance buys FTX, what happens with TSM? 

In June 2021, the up-and-coming FTX struck a monumental 10-year deal with the established North American esports organization TSM, paying $210 million to see the org go by the moniker “TSM FTX” in League of Legends, VALORANT, Apex Legends, and other titles the organization is involved in.

However, the world of crypto was struck yesterday by the shocking news of Binance, one of the two world’s largest crypto exchanges, announcing the official acquisition of FTX — the second largest crypto exchange — for an undisclosed sum, all amid rumors and fears that the crypto market is poised for another crash.

As first reported by The New York Times, Binance founder Changpeng Zhao said that FTX has asked for his company’s help and that the deal will see Binance “fully acquire FTX.com and help cover the liquidity crunch.” According to the NYT report, FTX “has seen a spate of withdrawals over the past few days.”

With TSM getting such a significant amount from FTX, the question is, how reliant is TSM on that revenue for the foreseeable future?

Unexpected trick by LCS

While TSM FTX’s future is uncertain, the partnership between TSM and FTX has been poised with issues from the very beginning. Just hours after announcing the deal, TSM was informed by Riot Games that they are not allowed to use their new cryptocurrency sponsor during official broadcasts in League of Legends or VALORANT, as it violates Riot’s policies regarding partnerships with cryptocurrency exchanges.

TSM’s wounds were rubbed even further when, two months later, the LCS itself inked a seven-year sponsorship deal with FTX. It’s hard to understand why it’s okay if the LCS advertises cryptocurrency, but it’s a no-go when it comes to an organization.

Meanwhile, TSM retained the TSM FTX name on social media and on official Apex Legends broadcasts. The team even won the 2022 Rainbow Six Siege Invitational as TSM FTX and also the TSM pro jersey for sale features the FTX logo. However, the jerseys that the teams wore on stage had to be without the FTX logo. 

Header: TSM FTX