TSM Signs 10-year Brand Deal with Cryptocurrency Exchange FTX For $210 Million
- TSM and cryptocurrency exchange FTX have entered a brand deal for an reported figure of $210 million.
- The brand deal will see the cryptocurrency exchange pay TSM $21 million annually.
- Riot Games has restricted TSM from using the new "TSM FTX" brand as its team name during LCS and Valorant broadcasts.
North American esports organization TSM has signed a 10-year brand deal with cryptocurrency exchange FTX, which will see the brand being renamed to TSM FTX. FTX Trading Limited and West Realm Shires Services have jointly entered the deal with TSM to promote their FTX and FTX.US cryptocurrency platforms through the esports organization. The cryptocurrency exchange will be paying out $21 million annually for ten years and it is one of the largest brand deals in esports history. However, the business deal has led to some controversy with Riot Games barring the FTX brand name from TSM’s promotional materials and team name.
TSM to Rebrand Itself to "TSM FTX" For 10 Years
TSM will be rebranding itself to TSM FTX in many of the titles that the esports organization competes in, including PUBG, Fortnite, Rainbow Six Siege, Apex Legends, Valorant, and other popular titles.
SM CEO Andy ‘Reginald’ Dinh talked about the rise in interest in cryptocurrency and revealed that the organization wants to be a “truly global” esports brand that has “bases in multiple places”. The brand deal is among the biggest of its kind in the esports industry that was made public.
This is not the first time that an esports organization has partnered with a cryptocurrency exchange platform for a brand deal. Team Dignitas entered a brand deal with QNTMPAY which will see the esports organization compete as Dignitas QNTMPAY for four years.
Riot Games has Barred TSM from Using FTX in Its Branding
Riot Games revealed it will not be allowing the new branding for its League of Legends and Valorant broadcasts. TSM is free to use the new “TSM FTX” branding on social media and other games as part of the brand deal. The new brand deal violates multiple developer guidelines around partnerships with cryptocurrency exchanges.
According to Dot Esports’ communication with Riot “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.”
Riot bars not only cryptocurrency exchanges but also gambling and pornography brands. It has also barred beer companies from partnering with teams in the LCS events but the company’s stance changed after the LCS partnered with Bud Light last year.
RELATED: TSM Announces Female Valorant Roster Ahead of VCT Game Changers
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