Esports organization TSM issued a statement on Saturday to address the ongoing situation with its naming sponsor FTX, who filed for Chapter 11 Bankruptcy protection under the U.S. Code in the bankruptcy court in the District of Delaware. This announcement followed a rough week for the crypto exchange as it went from being valued at $32B USD to filing for bankruptcy in the span of 10 days. For TSM the focus has been on the state of its naming rights deal with FTX—the companies signed a 10-year, $210M naming rights deal in 2021.
In its statement the company said that it is actively monitoring the situation, conferring with lawyers, and does not have any insight beyond what has been reported publicly. Further, it says that the company is stable and is projected to be profitable This year and beyond—we’ll have to take their word on that as it is a privately owned company that is not legally obligated to report its profits and losses publicly.
TSM’s statement in full:
“Like the rest of the world TSM has been closely following the situation surrounding FTX. We have no insight into the matter beyond what has been reported publicly. We are currently consulting with legal counsel to determine the next best steps to protect our team, staff, fans and players.
“To be clear, TSM is built on a solid foundation. We are stable and profitable, and we continue to forecast profitability for this year, next year, and beyond. We look forward to a great year in 2023.”
Rather than wait around for the ruling of the Delaware bankruptcy court, some partners including Miami Dade County commissioners/Miami Heat management (who had a 10-year deal for the naming rights to its home venue in Miami) and Brazilian esports organization FURIA (who signed a one year sponsorship deal worth $3.2M in Q1) announced over the weekend that they are terminating their partnerships with the crypto exchange and moving on.
For a more in-depth rundown of the ongoing FTX situation, check out previous reporting here.