Professional Esports organisation Team SoloMid (TSM) has initiated the suspension of its $210 million sponsorship deal with the now-bankrupt FTX cryptocurrency exchange post the trading platform’s collapse in the previous week, as reported by Cointelegraph.
According to Cointelegraph, on November 16, 2022, the United States-based Esports organisation revealed the development through a tweet. It is believed that the decision was taken after monitoring the entire situation and discussions taking place internally. In June, 2021, the $210 million deal happened after TSM was renamed to TSM FTX. During the deal, the esports organisation stated about the allocation of its resources globally by opening offices in Asia, Europe, South America, according to Esports Insider.
On the basis of information by Cointelegraph, TSM made the purchase of one million dollars worth FTX’s native tokens, FTT, for distribution among players and employees. Post FTX’s collapse, TSM in a November 13, 2022, tweet highlighted on the firm’s aim to seek legal counsel “to decide the best next steps to protect our team, staff, fans and players.”
“This means that FTX branding will no longer appear on any of our org, team and player social media profiles, and will also be removed from our player jerseys. TSM is a strong, profitable and stable organization. We forecast profitability this year, next year and beyond. The current situation with FTX does not affect any part of TSM’s operating plan, which was set earlier this year,” TSM stated through an announcement.
Moreover, Cointelegraph noted that apart from TSM, NBA’s Miami Heat also made the announcement of termination of their business relationship with FTX through a November 12, 2022, Twitter post. Reportedly, the Mercedes Formula 1 team was another sports team to end its sponsorship with Sam Bankman-Fried’s company, which was announced post FTX’s filing of bankruptcy on November 14, 2022.
(With insights from Cointelegraph)
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