After the failure of a major sponsor, the FTX bitcoin exchange platform, the esports group Team SoloMid, often known as TSM (or TSM FTX), is now acting as a “legal consultant.”
As part of a sponsorship contract that resulted in the organisation adopting the “TSM FTX” moniker, FTX reportedly paid TSM 17.6 million pounds (US$ 21 million) each year for a period of ten years. The deal was reported to have been made by the New York Times. During the announcement of the deal, the former chief executive officer of FTX, Sam Bankman-Fried, made a comparison between the deal and what is happening in more traditional sports. He stated, “Take a huge industry and then rethink it in the digital age: that’s what esports is. to sports, and it’s the same as cryptocurrency for investment and financing.” In other words, esports are similar to traditional sports in that they are undergoing a rethinking of
However, the future of FTX has seen a very significant transformation since that time. After hearing rumours that the company was in poor financial shape, investors withdrew funds totaling 5 billion pounds, which is equivalent to 6 billion dollars in today’s currency. As a result, the company filed for bankruptcy protection the previous week.
Following the failure of FTX, the company has come under further attention, and reports indicate that the United States Securities and Exchange Commission is investigating the company’s operations. Bankman-Fried told Reuters that he is currently in the Bahamas (where FTX is based), but the report claims that he and his colleagues, former FTX executives, are looking for ways to escape to Dubai as they face oversight from local authorities in the Bahamas. Bankman-Fried resigned as CEO and told Reuters that he is currently in the Bahamas.
Despite the ongoing drama involving their previous sponsor, TSM believes that the organisation is still “stable and lucrative,” which is not good news for the company’s sponsorship relationship with TSM (via PC Gamer).
On Twitter, TSM made the following announcement: “Together with the rest of the world, TSM is keenly monitoring the situation around FTX.” We do not have any information on this matter, other than what has been made available to the public. We are in the process of working with legal counsel to identify the subsequent steps that will provide the greatest level of safety for our team, employees, fans, and players.
“Just so there is no confusion, the TSM was constructed on a rock-solid basis. We are not only secure but also profitable, and we continue to anticipate that we will be profitable not just this year but also next year and beyond. We are excited about all that 2023 has in store for us.
TSM is an enormous corporation, and Forbes ranks it as the most valuable esports firm in the world with a valuation of 454 million pounds. It is quite improbable that the failure of FTX will have a significant negative impact on TSM (540 million dollars). Although the “TSM FTX” brand is still listed on the website of the organisation, it is possible that this is due more to contractual commitments than to anything else.