Professional esports organization Team SoloMid which is popularly known as TSM has called off its partnership deal with beleaguered Bahamian crypto exchange FTX.
The naming right deal which was worth $210 million is the latest sponsorship deal to go down the drain since the implosion of the FTX Derivatives Exchange which happened about a week ago.
A tweet by the company stated “After monitoring the evolving situation and discussing internally, we’re suspending our partnership with FTX effective immediately,” adding that “This means that FTX branding will no longer appear on any of our org, team and player social media profiles, and will also be removed from our player jerseys.”
Notably, this FTX deal with TSM was the largest in the history of esports. In June 2021, the deal was signed and caused a change in the esports firm’s name from TSM to TSM FTX. Part of the terms of the agreement at the time was that TSM would distribute crypto to its employees and players and also buy the FTX token (FTT) to the tune of $1 million.
Firms Scramble to Dissociate From FTX
This is just one of the few partnerships and sponsorships that has been called off since FTX Derivatives Exchange became insolvent and filed for bankruptcy in a United States court.
Similarly, Miami-Dade County suspended its naming rights business deal with FTX and removed its name from the arena which is home to the National Basketball Association team, the Miami Heat.
The Mayor of the county Mayor Daniella Levine Cava said “Miami-Dade County and the Miami Heat are immediately taking action to terminate our business relationships with FTX, and we will be working together to find a new naming rights partner for the arena.”
Before it was finally suspended, the naming right deal was with $135 million in addition to calling the arena which is set at the center of downtown Miami on Biscayne Bay after the crypto exchange, that is, FTX Arena.
Unlike Miami Heat, TSM was not immediately able to make a name adjustment to its Twitter handle due to the new verification rules for Twitter Blue which was introduced after Elon Musk acquired the social media company.
On the other hand, the Mercedes Formula One team has decided to keep the FTX logo on its F1 racing cars while it monitors the situation at the exchange.