FTX Is Sponsoring and Renaming an E-Sports Team
The crypto exchange will rename TSM to TSM FTX for $210 million.
- FTX is sponsoring e-sports group TSM in a $210 million deal that will see the organization rebrand itself to TSM FTX
- The new brand will be used online and in competitions.
- TSM is valued at approximately $410 million, and it is currently the largest e-sports organization in the U.S.
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Crypto exchange FTX has secured a deal in which it will sponsor and rename a popular e-sports team, according to the New York Times.
$210 Million Over Ten Years
FTX will pay Team SoloMid (TSM) $210 million over the next ten years. As part of the deal, TSM will be branded TSM FTX on its web page, on social media, in tournaments, and elsewhere.
However, there are some restrictions. Riot Games has barred the company from using the new brand, meaning that the name will not apply during League of Legends and VALORANT competitions.
“Crypto exchanges fall under a category of sponsorship that carries activation restrictions,” Riot Games explained in a statement to gaming news site Dot Esports. “As a result [the] new naming convention and FTX brand placement on TSM jerseys will not apply…in North America.”
One of the Biggest Deals of Its Kind
TSM is currently the largest e-sports organization in the U.S., with a valuation of approximately $410 million as of 2020.
The e-sports group includes teams that play League of Legends, Hearthstone, Super Smash Bros., Fortnite, Magic: The Gathering, and various other video games and tabletop games.
Meanwhile, FTX operates the 12th largest crypto exchange and the second largest crypto derivatives exchange. Those platforms respectively saw $2 billion and $10 billion in volume over 24 hours.
The New York Times noted that the agreement between TSM and FTX is larger than other deals between companies and traditional sports teams. It cited three recent deals (Citibank-Mets, MetLife-Giants, and Barclays-Nets) that amounted to about $20 million each.
On a related note, FTX negotiated a $135 million deal that renamed Miami’s AmericanAirlines Arena to the FTX Arena earlier this year. The arena’s signage was changed this week, completing the deal.
Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins.