Breaking Up is Hard to Do: TSM and FTX Part Ways
In a plot twist that no one saw coming (except maybe your pet goldfish), Team SoloMid (TSM), one of the giants in the esports realm, has dropped its $210 million sponsorship deal with FTX, the now-infamous cryptocurrency exchange. The announcement, made on November 16 via Twitter, marks the end of a partnership that saw TSM buckle under the weight of FTX’s spectacular collapse.
From TSM to TSM FTX and Back Again
Let’s rewind to June 2021 when the esports world buzzed with excitement as TSM rebranded to TSM FTX. The vision was grand: opening offices worldwide and investing in players using a shiny, new token. However, in a classic case of “what goes up must come down,” the whole thing came crashing down, leaving everyone to pick up the pieces. TSM had even distributed $1 million worth of FTX’s own token, FTT, to its players and employees— talk about a plot twist!
Legal Jargon and Social Media Scrubbing
After the FTX fiasco, TSM wasn’t just sitting around twiddling its thumbs. On November 13, as their worries escalated, TSM tweeted about talking to legal counsel regarding their next steps to protect their interests. The latest announcement stated that FTX branding will vanish from TSM’s public presence, including social media and jerseys:
- Goodbye FTX branding!
- Time to scrub the digital files!
- Players can finally get a new jersey—without the cringe factor!
Profitability in the Face of Adversity
You might be wondering, is TSM going to be alright? Well, they declared themselves a “strong, profitable and stable organization.” Their confidence permeated through their communications, reassuring stakeholders that they will remain functional and profitable even without FTX’s financial backing. Imagine that pep talk: “Don’t worry, everyone! We’ve got this!” Instead of taking a nap on their profits, TSM plans to thrive and keep moving forward.
The Ripple Effect: Other Companies Follow Suit
But hold on, it’s not just TSM. The shockwaves of FTX’s collapse led the Miami Heat to terminate their renaming agreement with FTX Arena in ever-so-dramatic fashion. They’re on the hunt for a new naming rights partner faster than you can say, “Where’d my money go?” Even the Mercedes Formula 1 team put the brakes on their relationship, citing vulnerabilities within the cryptocurrency sector. It’s a classic case of a sinking ship, and nobody wants to be left holding the anchor.
The Future of Sponsorships in Esports
One has to wonder: what does the future hold for sponsorships in esports after such a tumultuous event? The Major League Baseball (MLB) is still pondering its options, engaging in deep discussions to determine the best course of action. It feels like we’re living out a soap opera episode, but let’s hope for happier endings down the line.
