{"id":43172,"date":"2022-12-19T13:45:40","date_gmt":"2022-12-19T13:45:40","guid":{"rendered":"https:\/\/pley2win.com\/pc\/riot-games-trying-to-get-out-of-terrible-ftx-sponsorship-deal\/"},"modified":"2022-12-19T13:45:40","modified_gmt":"2022-12-19T13:45:40","slug":"riot-games-trying-to-get-out-of-terrible-ftx-sponsorship-deal","status":"publish","type":"post","link":"https:\/\/pley2win.com\/?p=43172","title":{"rendered":"Riot Games Trying To Get Out Of Terrible FTX Sponsorship Deal"},"content":{"rendered":"

\n<\/p>\n

\n

\"FTX — FTX founder Sam Bankman-Fried is led away in custody after being arrested in The Bahamas last week<\/figcaption>
Photo: MARIO DUNCANSON (Getty Images)<\/figcaption><\/p>\n<\/div>\n
<\/figure>\n
Back in August 2021, Riot Games\u2014the developers of League of Legends<\/em>\u2014signed a sponsorship deal worth tens of millions of dollars with cryptocurrency exchange FTX. You know, the exchange that is now bankrupt, with its founder arrested and facing serious fraud and money laundering charges<\/span>.<\/p>\n
As Web3 Is Going Just Great\u2019s<\/em> Molly White reports<\/a><\/span>, the deal was supposed to run for seven years, and involve FTX making \u201csubstantial payments\u201d to Riot, starting with $12.5 million for the 2022 calendar year (and escalating to $12.875 for 2023, and so on). So far only $6.25 million of that 2022 sum has been paid, and there is almost zero chance Riot will ever see another cent, so the company has filed a case with a Bankruptcy Court in Delaware seeking to have the rest of the sponsorship deal nullified. <\/p>\n
In strictly business terms, that\u2019s perfectly understandable. As Riot points out in their filing, FTX have declared bankruptcy, which should send the whole deal straight into the bin, no questions asked. Just in case anyone does <\/em>ask questions, though, Riot have added, \u201cThere 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\u2019s bankruptcy filing. FTX cannot turn back the clock and undo the damage inflicted on Riot in the wake of its collapse.\u201d<\/p>\n
Basically, Riot argues that FTX\u2019s reputation has been so thoroughly trashed in the past few weeks that being even remotely associated with the failed exchange is causing Riot harm. To put a bow on the whole thing, Riot then throws in the fact FTX\u2019s disgraced former boss Sam Bankman-Fried became notorious for playing Riot\u2019s *League of Legends<\/em> during business meetings<\/span>:<\/p>\n*
\n
Prior to, and throughout this media firestorm, Riot\u2019s image and reputation to its customer base, remained inextricably linked to FTX through its former CEO, Mr. Bankman-Fried. Media outlets and Twitter commentators splashed images of Mr. Bankman-Fried playing League of Legends\u2014Riot Games\u2019 game\u2014 at the same time that FTX was crashing. Mr. BankmanFried is famous for his affinity for the game. He is well-known among investors to play League of Legends during meetings. He acknowledged on Twitter that he played \u201ca lot more [League of Legends] than you\u2019d expect from someone who routinely trades off sleep vs work.\u201d Even Mr. Bankman-Fried\u2019s ranking in League of Legends has been the subject of online commentary with public figures Alexandria Ocasio-Cortez and Elon Musk weighing in.<\/p>\n<\/blockquote>\n
Even back when this deal was first signed, in August 2021, it was agonisingly clear what the endgame for this whole scam was going to be, whether it was video game developers or NBA teams<\/span> or overly-eager celebrities<\/span>. <\/p>\n
You would think Riot would know this, especially now in the middle of all this<\/em>, but another part of the filing argues that the FTX deal needs to be terminated because it is preventing the company from further \u201ccommercializing the crypto-exchange sponsorship category…currently owned by FTX.\u201d Fool me once, shame on you, etc, etc.<\/p>\n<\/div>\n