Posted in: eSports, Games, Video Games | Tagged: eSports, FTX, Team SoloMid, TSM

TSM Issues Statement On Recent FTX Crypto/Bankruptcy Issues

Esports organization Team SoloMid (TSM) issued a statement this evening in regard to the recent developments with FTX. In case you weren't already aware of the situation, Bahamas-based crypto exchange company FTX filed for bankruptcy on Friday, due to a rush of customer withdrawals that took place earlier that week. The entire situation is a complicated mess of funds being moved around and unaccounted investments, which Reuters has an ongoing report of, leading to what is currently one of the biggest company meltdowns in all of cryptocurrency history (so far, that we know of).

One of the companies that has worked with FTX is TSM, which basically became one of the sports and entertainment faces of the company when they bought the naming rights to the team for ten years (rebranding them TSM FTX) to the tune of $210m. The team was on the verge of expanding, but those plans may now be on hold as FTX is in all sorts of trouble. To get ahead of whatever is to come, the company sent out the statement below this evening to media and fans.

"Along with the rest of the world, TSM has been closely following the situation surrounding FTX. We have no insight into the matter other than what has been reported publicly. We are currently consulting legal counsel to determine the best next 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."

Given the nature of what's happening, and the bigger issues at hand for FTX, an esports team is probably at the bottom of the list of concerns they have at the moment. But it wouldn't entirely surprise us if they decided to simply cut their losses and end the partnership with the bankruptcy. The downside to this is that TSM would not be able to capitalize on the money they were due to receive for another nine years, forcing them to hold back on whatever expansions they were going to do in the short future. The good news is they can drop the name and move on to other ventures as their own company without someone owning the rights. But hey, this is esports, and it would shock us if someone else moved in, and suddenly the team became "TSM by McDonald's."

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