TSM has announced that it is suspending its $210mn partnership with bankrupt crypto exchange FTX.
Cryptocurrency giant FTX made waves across the internet when it filed for bankruptcy a Friday, October 11th. Among the most well-known crypto exchanges in the world, it was also the title sponsor for TSM. For a while after FTX's annoucement, there was a lot of speculation about what it would mean for TSM.
Finally, TSM have now released a statement saying it is suspending its $210mn partnership with FTX effective immediately.
In an announcement published across all its social media channels, with accompanying press release, the esports organization announced that the FTX branding will no longer appear on any TSM social media profiles and player jerseys. The statement also provides reassurances that TSM remains stable and profitable and expects profitable years to come. TSM is one of the largest esports organizations in the world with teams that participate in some of the most high-stakes tournaments for major titles.
TSM is dropping all FTX branding
"FTX branding will no longer appear on any of our org, team and player social media profiles, and will be removed from our jerseys. This process may take some time to complete as some social platforms have made changes to their product features"
The esports giant revealed in its press release that it will be dropping all FTX branding from its assets. This includes social media handles and profiles, merchandise, player shirts and official platforms. It has already removed the FTX name from its website and Facebook pages. FTX still appeared on its Twitter profile for some time, but that was because of the platform's recent changes to its verification system.
Biggest sponsorship deal in esports history
When TSM and FTX signed terms for a $210mn deal in June 2021, it was the largest sponsorship deal in the industry. The deal played a key role in solidifying TSM's position in the industry and turning it into one of the largest esports organizations in the world.
The deal included naming rights and the organization was globally recognized as TSM FTX. The two parties had originally agreed upon a deal that was supposed to last a decade. However, FTX announced that it was filing for voluntary bankruptcy after its attempted bailout by rival crypto firm Binance collapsed.
TSM claims it remains profitable
According to the press release by TSM, the organization remains stable and profitable across all areas and operations will carry on as expected. The organization is home to some of the most well-renowned esports players in the world. There's plenty of reason to expect that it will be on the lookout for a new title sponsor.
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
With TSM being an organization that is home to some of the biggest household names and revered esports talents, many fans are concerned about such a large deal collapsing. As of now, it looks like nobody is jumping aboard and the organization's executives are confident in their ability to keep the ship stable.