On June 4th, global esports organization TSM unveiled a brand new, multi-year partnership with FTX Trading Limited. The deal is reportedly worth $295 million. The long-term agreement is “the largest in esports history.”
As part of the deal, FTX has secured the exclusive naming rights for TSM. As a result, TSM has officially changed its name to TSM FTX.
“When I met Sam Bankman-Fried, I immediately knew we had to work together,” said Andy Dinh, Founder and CEO of TSM. “Not only did TSM FTX fit perfectly as a brand, Sam is an innovative CEO that is in every way ahead of his time. Against all odds as a young ambitious entrepreneur, he has been able to disrupt markets by making smart decisions and by surrounding himself with smart people. He has proven that you can build a multi-billion-dollar business that can grow incredibly fast at scale – all while charging a fraction of what other platforms charge, and creating a culture of community and focus on social impact. This deal is extremely important to the future of our organization, but it was equally as important for me personally to partner with such a visionary leader. Just as a shared passion of gaming connects people around the world across ages, continents, and language barriers, Sam built a company that connects the world around a shared value of currency. I am extremely proud he chose to work with TSM.”
TSM FTX will now work on several new, industry-leading initiatives while attempting to invest resources into the world of gaming and esports over the next five years. Furthermore, a major philanthropic project is expected to be announced by TSM FTX over the coming weeks.
The Profit‘s Take:
Great for TSM on this one. Easy money here. I’m just not sure what FTX gets out of this. I don’t think anybody will actually call the team TSM FTX. Fans and casters will likely keep referring to them as TSM. In the end, though, this partnership makes sense because there is a lot of overlap between gamers and cryptocurrency users. This is a great opportunity for FTX to create more brand awareness with TSM’s gamer audience. The big question I would have for FTX is could they have achieved the same goals with a lot less money? The answer is probably yes.