Esports giant Team SoloMid (TSM) has halted its $210 million, 10-year naming rights deal with cryptocurrency exchange platform FTX. The organization announced its decision in a statement on Twitter on Wednesday.
TSM, one of the largest esports organizations, said it will no longer display the FTX branding on its social media accounts and players’ jerseys. The organization noted that the process of removing the FTX trademark may take some time since “some social platforms have made changes to their product features.”
TSM signed a multi-year agreement with FTX in June 2021. It is considered the largest known sports deal in crypto history. Despite FTX’s collapse and the failed deal, TSM said it was not affected by it.
“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,” the organization said.
TSM’s decision to end its partnership with FTX comes after it was revealed that it funneled customer funds to sister cryptocurrency trading firm, Alameda Research, which it lost on risky bets. This resulted in a $10 billion hole in FTX’s balance sheet. Bankruptcy followed, which involved Alameda and 130 other FTX Group companies.
TSM joins a host of sports teams and organizations that have tried to distance themselves from the bankrupt exchange. The NBA Miami Heat announced last week that it had finalized a $135 million sponsorship deal with FTX, which included naming rights to the team’s arena.
The Golden State Warriors, last year’s NBA champions, had a business relationship with FTX that was put on hold last week. The deal included arena promotions and advertisements. The Mercedes Formula 1 team has also cut ties with the infamous exchange.
Another company that ended its relationship with FTX was GameStop, which had an experimental gift card partnership in the pipeline. Visas also left in the wake of the chaos. They were supposed to the case FTX branded debit cards in 40 countries around the world.
TSM is one of the largest esports organizations in the world. Their decision to suspend their partnership with FTX also shows how the situation is viewed negatively in the gaming and entertainment industry.