Riot Games Files Motion To Scrap Sponsorship Deal With Failed Crypt Company FTX
Back in August, League of Legends studio announced as the largest sponsorship deal that its ever secured. The deal was supposed to last for seven years with FTX branding to be prominently displayed during League of Legends Championship Series events for boatloads of cash.
Back then, FTX was one of the biggest cryptocurrency exchange platforms in the world up until its founder, Sam Bankman-Fried, was arrested on charges of fraud and money laundering and the company filed for bankruptcy.
Riot has now filed a motion to terminate the deal and hopefully get paid what it’s owed by FTX, which according to the motion, amounts to roughly $6.25 million for 2022 alone. Riot also hopes to permanently dissociate itself from FTX to avoid further damage to its brand.
“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,” said the studio. “FTX cannot turn back the clock and undo the damage inflicted on Riot in the wake of its collapse.”
The studio is also actively looking for another crypto-focused sponsor to replace FTX. “The longer Riot is prevented from commercializing the crypto-exchange sponsorship category and the assets currently owned by FTX the more damages Riot incurs,” added the studio.
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
