Team SoloMid have just signed a ten-year naming rights deal with the cryptocurrency exchange company FTX worth $210 million. Let that one sink in — no typos were made in that last sentence. As a result, all TSM rosters will be renamed into TSM FTX. It’s a pretty good pairing, all things considered, and is miles better than the TSM Snapdragon partnership that happened so many years ago.
Now, you might be wondering: what is FTX paying for exactly? Well, the answer is both simple and surprising: just the naming rights. They want their name associated with TSM, and they’re obviously willing to pay a pretty penny for it to happen. These deals have been the norm in traditional sports for quite a while, and they’ve only now begun to emerge in esports as well. Well, they did happen from time to time way back when, but they were mostly done in haste and rarely amounted to much. This time around, though, it’s more of a long-term kind of thing.
Whether it’s a worthwhile investment, however, is up for debate. The crypto market is currently booming (to say the least), so they might as well invest while the “iron’s hot.”
In any case, we’re glad that certain LCS teams have found yet another way to generate revenue. Competitive League of Legends is a business, after all, and selling off their naming rights is just one of the many ways in which organizations can accrue profit and establish a more financially stable future.
TSM FTX — An Investment Into the Future
This perennial North American organization will use these newly acquired funds to branch out in every sense of the word — new teams, players, premises, and everything in between. Moreover, TSM will open offices in Asia, Europe, and South America and by doing so strengthen their brand even further.
This global expansion strategy will take place over the next five years.
All in all, we’re elated to see such a big partnership come to fruition. It’s not only great for TSM, but for the whole of esports as well, and if this signing is anything to go by, naming rights deals are all but guaranteed to become the norm sooner rather than later.