Esports organization TSM has announced it will be suspending its partnership with cryptocurrency exchange platform FTX following the company’s announcement of bankruptcy proceedings.
FTX and TSM made headlines in 2021 for an absolutely massive $210 million sponsorship deal that included TSM’s name being rebranded to TSM FTX. But now, the enormous exchange platform announced it was beginning the proceedings for Chapter 11 bankruptcy in the United States.
The North American organization took to Twitter to announce its separation from the enormous cryptocurrency exchange’s partnership. The two joining forces were meant to be a long-term deal, and one of esports’ largest financial contracts. However, just one year later, that partnership is being annulled by TSM following the news of FTX’s implosion. Signs of the massive partnership loss already appeared to be rearing their head, with roster releases and shakeups.
TSM notes that this will fully remove FTX from the team’s branding, jerseys, online content, and similar promotions. However, due to Twitter’s recent changes to restricting verified members from changing their names, TSM will be stuck displaying its name as TSM FTX for the time being. According to TSM’s statement, the loss of the FTX funding will not affect any part of TSM’s operating plan, but the loss of a $200 million contract can’t come lightly in a space where many organizations are budgeting to spend less.
TSM wasn’t the only entity in the esports space sponsored by the exchange, with even the North American franchised League of Legends circuit, the LCS, taking up another sponsorship. As a part of the Chapter 11 filings, all of the approximately 140 companies in the FTX Group would also be filing for bankruptcy alongside FTX itself.
The full extent of this change in funding has yet to be seen, but TSM seems confident that it can continue its previous plans without interruption.