“League of Legends” creator Riot Games agreed to take nearly $100 million from FTX, court documents presented as evidence at Sam Bankman-Fried’s criminal trial show. The company also decided to give the Tomorrowland music festival about $42 million through 2026.
The sponsorship agreement, which was announced on October 18, 2022, will last for seven years and will include FTX branding on the LCS broadcast, digital platforms, and in-game assets. FTX will also sponsor the Most Improved Player Award and the LCS Finals MVP Award, as well as create custom content and experiences for fans.
According to court documents that were submitted as part of the ongoing criminal case against FTX’s founder and CEO, Sam Bankman-Fried, Riot Games agreed to receive nearly $100 million from FTX in exchange for various sponsorship and marketing rights. The documents also show that Riot Games agreed to sponsor the Tomorrowland music festival, one of the largest electronic dance music events in the world, with about $42 million over a period of five years.
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This news comes as a shock to many fans and observers of the gaming and crypto industries, as Riot Games had previously maintained a low profile regarding its involvement with FTX. The deal was reportedly signed in late 2022, shortly before Bankman-Fried was arrested by the US authorities on charges of money laundering, fraud, and tax evasion. Bankman-Fried is accused of using FTX to facilitate illegal transactions and evade taxes on billions of dollars’ worth of crypto assets. He is currently awaiting trial in a federal prison.
The court documents reveal that Riot Games agreed to grant FTX exclusive naming rights to its League of Legends esports tournaments, such as the World Championship, the Mid-Season Invitational, and the All-Star Event. FTX also gained access to Riot Games’ global fan base, which numbers in the hundreds of millions, through various digital and physical activations. Additionally, Riot Games agreed to integrate FTX’s logo and branding into its game client, website, social media, and merchandise.
The deal also involved Riot Games sponsoring the Tomorrowland music festival with FTX’s funds. The festival, which takes place annually in Belgium and attracts millions of attendees and viewers, features some of the most prominent artists and DJs in the electronic music scene. Riot Games agreed to provide FTX with prominent exposure at the festival, such as on-stage banners, video screens, and live streams. Riot Games also agreed to create exclusive content and experiences for Tomorrowland fans, such as virtual concerts, games, and giveaways.
The deal between Riot Games and FTX is one of the largest and most controversial partnerships in the history of gaming and crypto. It raises many questions about the ethics and legality of such arrangements, especially in light of Bankman-Fried’s criminal charges. It also poses a challenge for Riot Games’ reputation and credibility among its loyal fans and customers, who may feel betrayed or deceived by the company’s involvement with FTX.
FTX is not the only cryptocurrency company that is investing in the esports industry. Earlier this year, Crypto.com signed a $175 million deal with ESL, the world’s largest esports company, to become the exclusive cryptocurrency and NFT partner of several major tournaments, including ESL Pro Tour and ESL One. Crypto.com also partnered with Paris Saint-Germain, one of the most prominent soccer clubs in Europe, to launch an exclusive fan token and NFT collection.
The esports industry is not the only target for cryptocurrency sponsors. FTX has also made headlines for striking deals with some of the biggest names in music and entertainment. In September 2022, FTX announced that it will be the title sponsor of Tomorrowland, one of the world’s largest electronic music festivals, which attracts over 400,000 attendees every year. FTX will have a prominent presence at the festival, which will feature a dedicated FTX stage and exclusive FTX experiences for VIP guests.
In addition, FTX has also secured a partnership with Coachella, one of the most iconic music festivals in the world, which showcases a diverse lineup of artists across various genres. FTX will be the official cryptocurrency exchange partner of Coachella 2024, which will mark the festival’s 25th anniversary. FTX will offer special perks and benefits to Coachella attendees who use its platform, such as access to exclusive lounges, meet-and-greets with artists, and priority entry to stages.
FTX’s aggressive sponsorship strategy is part of its vision to become the leading global cryptocurrency exchange and to increase its brand awareness and user base. FTX was founded in 2019 by Sam Bankman-Fried, a former Wall Street trader and a prominent figure in the crypto space.
FTX offers a wide range of products and services for crypto traders and investors, such as spot trading, futures trading, options trading, leveraged tokens, prediction markets, NFTs, and more. FTX also operates FTX US, a regulated cryptocurrency exchange for US customers.
The Sam Bankman-Fried founded crypto exchange FTX reached a new valuation of $25 billion following a Series B funding round. This new number elevates FTX as one of the most monetarily valued crypto startups globally. The Series B funding round revealed backing from major investors such as Ontario Teachers’ Pension Plan Board, SBF is currently serving trials due to role played on event and after implosion of FTX and Alameda Research in November 2022.
The funding round attracted investments from some of the most influential celebrities and entrepreneurs in the world, such as Tom Brady, Gisele Bündchen, Kevin Durant, Ashton Kutcher, Will Smith, Snoop Dogg, and Mark Cuban. FTX has also donated over $10 million to various charitable causes, such as COVID-19 relief efforts, animal welfare organizations, and environmental initiatives.