The post Riot Plans to sue FTX in effort to end 7-Year deal due to alleged reputational harm appeared first on Esport Bet.
]]>Riot Games stated irreparable damage to its reputation as its reason for terminating the partnership, owing to the negative stories surrounding FTX and its filing for bankruptcy.
��There is simply no way for FTX to cure the reputational harm already caused to Riot as a result of the highly public disrepute wrought by the debacle preceding FTX��s bankruptcy filing,�� Riot says in the court documents.
��FTX cannot turn back the clock and undo the damage inflicted on Riot in the wake of its collapse.��
News of the motion was made public by independent cryptocurrency writer and reporter, Molly White.
“Riot Games just filed a motion in the FTX bankruptcy case to end their deal, pertaining to the League of Legends Championship series,” White said.
Riot Games just filed a motion in the FTX bankruptcy case to end their deal, pertaining to the League of Legends Championship series.
FTX still owes $6.25M (about half the payment) for 2022, and will owe $12.875M for 2023. Per the agreement, the payments escalate through 2028.
— Molly White (@molly0xFFF) December 17, 2022
Last summer, Riot and FTX teamed up when Riot, the developer of League of Legends, selected FTX as the official cryptocurrency sponsor for the LCS, their most profitable North American esports league. However, the partnership was doomed to fail when FTX filed for bankruptcy earlier this year.
The court document stated that FTX owed Riot $12.5 million for the 2022 calendar year and has paid Riot $6.25 million, which is half of the total amount owed for the year.
However, as agreed upon, FTX will owe Riot even more money in the following year, with the first payment being due on January 3, 2023.
Riot and FTX were planning to continue their partnership until the 2028 season, with payments to Riot increasing annually. It is estimated that the partnership would have resulted in Riot earning approximately $96 million, according to a statement by the cryptocurrency researcher and writer.
“FTX still owes $6.25M (about half the payment) for 2022, and will owe $12.875M for 2023. Per the agreement, the payments escalate through 2028,” White continued.
“It looks like the total deal amount for 2022�C2028 was around $96M.”
Sam Bankman-Fried, the founder of FTX, was arrested in The Bahamas earlier this week. In its legal motion, Riot claims that the connection between the company, the LCS, and the League of Legends game to Bankman-Fried has a negative impact on all of Riot’s brands.
The motion also states that Bankman-Fried has demonstrated recklessness and immaturity, particularly with the allegations that he was playing League games while FTX was experiencing financial problems.
According to Riot, their reputation is closely tied to FTX and Bankman-Fried, especially due to the founder’s passion for League of Legends.
��The reputational harm inflicted upon Riot cannot be undone,�� The motion read.
��FTX cannot go back in time and put in place corporate controls for the safekeeping of customer funds that have in the public eye now been absconded.��
FTX sponsored a team called TSM in the LCS, but TSM was not allowed to use FTX branding in League of Legends events due to Riot’s rules on prohibited sponsorships, which include crypto partnerships.
Despite this, TSM did use FTX branding in other esports ventures. However, TSM and FTX ended their partnership on Nov. 16, just 17 months into their 10-year agreement.
A hearing date has been set for January 11, 2023, for Riot’s motion to terminate the agreement with FTX.
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]]>The post FURIA terminates sponsorship deal with FTX appeared first on Esport Bet.
]]>The news of their decision to discontinue their partnership with FTX was announced on Twitter by the franchise’s co-founder, Andr�� Akkari. He stated that it was imperative to cancel the sponsorship as the franchise’s goal is always the prioritization of their fans.
“FURIA closely follows the activities of all its partners, always attentive to the possibility of being able to contribute with them, but prioritising our fans. �� The current case of our crypto exchange sponsor, which is in the global news, serves as an example,” Akkari wrote on his Twitter page.
“After a conversation with our contacts at the company, it was decided that FURIA will discontinue the FTX exhibition, removing the brand from all its spaces. The objective is to prevent the current phase of the company from harming any fan. FURIA continues to value our strong partners and promote them, however always prioritising our fans at any cost.”
The franchise also stated that the announcement was to take effect immediately. FURIA have taken action by removing the FTX branding from their Counter-Strike: Global Offensive team’s jerseys at the IEM Rio Major 2022.
Aside from FURIA, FTX was also the sponsor of the North American franchise TSM and the League of Legends Championship Series (LCS). TSM and the LCS are yet to announce their termination of their sponsorship deals with the cryptocurrency exchange company.
FURIA had earlier stated their interest in securing a long-term relationship with the Sam Bankman-Fried-owned company. Their one-year agreement with FTX, which was signed in April 2022, had a value of about $3.2 million, but the amount of money paid thus far as part of the deal has not been disclosed.
FTX��s deal with TSM was a more expensive one, with the cryptocurrency exchange company securing an exclusive naming rights deal with the American franchise. The deal was worth $210 million and was to run for a 10-year span. Unlike TSM, the LCS��s deal with the brand was a seven-year deal, which is threatened with FTX��s filing for bankruptcy.
The cryptocurrency exchange company filed for bankruptcy some weeks ago, on October 11 in Delaware, United States. The decision coming from one of the biggest cryptocurrency exchanges came as a shock to many.
During the company��s last funding round in January 2022, FTX was valued at a whopping $32 billion. However, the company��s issues began with an in-depth report made by CoinDesk on October 9. The report, which shared information that Alameda Research, a sister company to FTX, held a significant amount of the broker’s crypto assets, pushed the company into a whirlwind of no return.
“FTX and Alameda Research are closely tied,” the report read.
“A recent Alameda document showed that the biggest asset on the organization’s balance sheet was FTX��s FTT token; Dogecoin plunges late.
@thesamreynolds and @JPRubin23 report.”
FTX’s close competitor Binance, who initially showed interest in purchasing its rival by signing a letter of intent, pulled out of the move after reviewing the finances of FTX. Binance proceeded to sell its investments in FTT, the FTX��s owned cryptocurrency. Actions taken by the Changpeng “CZ” Zhao-owned company set a bad precedent that saw FTX users selling off their assets.
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]]>The post FURIA Esports signs $3.2 million sponsorship deal with crypto exchange FTX appeared first on Esport Bet.
]]>While only a one-year deal was penned, FURIA has clearly stated that they are looking to establish a long-term relationship with their latest sponsor.
The partnership was officially released via a video ad on the FURIA official Twitter page. The caption reads:
“If you didn’t already know, Zero leaks for you! FURIA is diversity, FURIA is innovation, FURIA is crypto.��
Se voc�� ainda n?o sabia, o ZeRO vaza pra voc��!
FURIA �� diversidade, FURIA �� inova??o, FURIA �� cripto.
FURIA �� @FTX_Official! pic.twitter.com/67pOozOsOl
— FURIA (@FURIA) April 22, 2022
FTX has focused on the sports industry in the last few years, signing deals with major sporting brands across the globe.
In March 2021, they became the first cryptocurrency exchange to sponsor professional sports in the US after they bought the naming rights of NBA team Miami Heat’s arena for $135 million.
That same year, the crypto exchange company entered the esports industry after signing a 10-year naming rights deal with North American esports giants TSM for $210 million.
Not long after, FTX announced another deal involving esports. They agreed on a seven-year partnership with the League of Legends Championship Series.
With so much emphasis on the North America (NA) market, FTX has opted to spread its reach to South America (SA), which is what the deal with FURIA represents.
However, it is worth noting that they have also invested in SA teams like Free Fire and Wild Rift.
FURIA has also secured sponsorship deals from several big brands in the past, including Betway, HyperX, Red Bull, Pokerstars, etc.
Eleven teams from the individual Riot leagues Spring Splits will compete in the 2022 MSI scheduled to hold from May 10 to 29 in Busan, South Korea. FURIA has lost its opportunity to represent CBLOL after finishing fourth in the overall standings.
The Brazilian team started Split 1 on an incredibly high note, finishing second in the Group Stage (12-6).
In the playoffs, they completely lost their way and failed to win a single series.
Their first loss came at the hands of paiN Gaming as they failed to win the best-of-5 series despite holding a 2-1 lead.
FURIA had an opportunity to redeem themselves in the Losers’ Round 3 but could not handle the heat of RED Canids.
Red Canids will take on paiN Gaming in the Grand Finals for a chance to qualify for the MSI.
Whoever wins that matchup will represent CBLOL in the Invitational.
It is worth pointing out that the 2022 MSI is a lot more accomodating, as they have announced that the LPL representative can play remotely. Due to China’s COVID-19 travel restriction, the winning team will not be able to travel to South Korea to join their counterparts.
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