FTX has partnered with TSM for $210 million over 10 years, however, a naming rights issue may cause problems
FTX Partners With TSM
The massive FTX recently partnered with Team SoloMid (TSM) for a sponsorship deal worth $210 million over the next ten years. For those who don’t know, FTX was launched in 2017 and is a massive crypto exchange platform that was, as FTX likes to say, built by traders for traders. TSM is a giant professional esports organization based in the USA, which regularly competes in highly competitive video game tournaments.
The deal entails that TSM would include FTX in the name, going by “TSM FTX.” The partnership is hoping to become one of the largest the Esports world has ever seen. However, what was poised to be a successful, typical sponsorship, might not be as lucrative as expected, thanks to an issue that has emerged with Riot Games.
Riot Games has Strict Rules
Riot Games was founded in 2006 and is a global company that develops video games and hosts massive tournaments. Unfortunately for FTX, Riot Games does not allow for non-approved cryptocurrency exchanges to be showcased during their events.
During broadcasts, FTX will not be shown on the jerseys of the TSM players. It will remain TSM. Chris Greely, who is the head of Riots esports in North America explained that: “The TSM and FTX sponsorship deal does not break any LCS sponsorship rules, but crypto exchanges fall under a category of sponsorship that carries activation restrictions.”
TSM will not be allowed to put “TSM FTX” as their logo during League of Legend and VALORENT tournaments. TSM’s most popular team is their League of Legends team. In 2020, 46 million people tuned in to watch their League of Legends tournament. That’s a lot of views FTX is missing. This is one of the reasons many analysts are saying the deal is less valuable than it seems.
Although the news is far from ideal for FTX, TSM will still sponsor FTX via their social media, team content, as well as other outlets where the sponsorship is permitted. The sponsorship has lost a lot of its punch, due to Riot Games restriction on cryptocurrency exchanges.
The sponsorship, although not working ideally for FTX, is still a significant move for the crypto industry as a whole. The move signifies crypto beginning to make its way into the mainstream. It should be exciting to see what follows this massive sponsorship.
FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products, and leveraged tokens. FTX strives to develop a platform robust enough for professional trading firms while at the same time being intuitive enough for first-time users.
TSM is an elite gaming brand composed of championship esports teams, world-class influencers, and gaming strategy sites that level up the entry-level player to professional. TSM seeks to provide maximum value through the competitive strength of their teams and the creation of exciting, educational, and entertaining content that delivers the ultimate esports and gaming fan experience.
Source : bsc.news
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