Before its bankruptcy, FTX signed a major sponsorship deal with League of Legends studio Riot Games. As part of this agreement, he promised to pay $100 million to Riot Games. However, it is not yet clear how much of the amounts in this agreement he paid.
Payments are included in the content of the major sponsorship agreement
During its heyday, now-bankrupt crypto exchange FTX promised nearly $100 million to League of Legends developer Riot Games as part of a deal to sponsor Riot’s League Championship Series (LCS) esports competition, according to documents from the Sam Bankman-Fried case. . According to the documents, he would fulfill this promise within the scope of many large sponsorship agreements.
The amount of FTX’s settlement with Riot was released as part of the trial in New York this month, in which FTX founder Sam Bankman-Fried is being tried for seven crimes, including wiretapping fraud, securities fraud and money laundering. The value of the deal has never been disclosed before. FTX has agreed to sponsor Riot’s League of Legends Championship Series (LCS) in 2021 as part of a seven-year deal that will automatically renew in 2028 unless either party objects, according to a spreadsheet shared Monday detailing FTX’s numerous sponsorships. did.
FTX overcharged its former CEO for his favorite game!
In the table, FTX would pay a total of $ 4 million for Riot’s LCS in 2021. This amount would increase to a total of $12.5 million in 2022. It would also pay about $12.8 million more this year. From this we understand that there will be annual payments until the closing of the deal. According to the document, the exchange also promised the esports organization TSM over $136.5 million under the “FTX Trading” label and another $73.5 million under the “FTX US” label. This 10-year, $210 million total deal was announced in June 2021. TSM had about $10.8 million in total debt in 2021, $15.37 million last year, and another $16.6 million in this year’s total deal, according to the spreadsheet.
However, cryptokoin.comAs you follow from , FTX crashed dramatically in November 2022. It even put the crypto market into a long winter. It’s unclear how much of those totals were paid to Riot and TSM before the stock market crash. Riot Games has not made any statement regarding the issue so far.
The game that the former CEO of FTX was obsessed with!
League of Legends was a noted obsession of former FTX CEO Bankman-Fried. He was constantly writing about the game on social media. He also said he played the game during business meetings and interviews. “(I am) famous for playing League of Legends during phone calls,” Bankman-Fried wrote on Twitter in 2021.
8) On League of Legends:
I play a lot more than you’d expect from someone who routinely trades off sleep vs work.
Why?
Well, there’s one answer, which is the obvious one. The single most universal thing about LoL is that everyone who plays it says they wish they didn’t.
— SBF (@SBF_FTX) February 4, 2021
According to ActivePlayer’s data, the former FTX CEO’s favorite game has 133 million monthly active users. It is also one of the most popular competitive e-sports games. The crypto industry has become a promising new source of revenue for some esports organizations facing financial difficulties as they struggle to turn a profit. Some organizations, such as TSM, M80, and 100 Thieves, rely heavily on sponsorships. Others have tried these avenues with the assumption that NFTs and crypto integrations would better engage with their fan bases. However, momentum around crypto/sports ties has long cooled due to the bear market.
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