earlier yesterday, announced Cryptocurrency exchange FTX announced a massive 10-year naming rights sponsorship of $210 million.

The sponsorship is for the popular esports organization Team SoloMid (TSM), which offers a wide range of video games.

However, according to many analyzes that followed the deal and its merits, the deal is less valuable than it appears.

Is the sponsorship deal overvalued?

TSM will not be able to use the “FTX” trademark in its name or T-shirts when competing in matches for games designed and produced by Riot Games Studios.

It can be said that the Riot Games League of Legends Championship Series (LCS) team, which is one of the famous teams in esports, will not also bear the name of the sponsoring company.

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site mentionsdot sportsThe news was first reported, noting that Riot Games has restrictions on how teams can activate sponsorship of cryptocurrency exchanges during official competitions.

Apparently, these details were not reported in the original announcement.

Chris Greeley, Head of Esports North America and Oceania said:

The TSM and FTX sponsorship deal does not break any LCS sponsorship rules, but cryptocurrency exchanges fall under the sponsorship category which imposes restrictions on activation.

As a result, TSM’s new naming convention and FTX branding on TSM jerseys will not apply to LCS or other Riot Games esports in North America.

The inability to use the planned “TSM FTX” trademark that will be used in other non-Riot titles, social media and content, and in League of Legends events removes what initially seemed to be one of the long-term gems for FTX.

Evil Geniuses is another LCS team that already has a sponsor Coinbase, so the same rule applies to them too.

League of Legends is arguably the most popular esports game, with many regional franchise leagues and sponsors.

Each season culminates in the annual League of Legends World Championship, accompanied by a lavish spectacle that attracts more than 100 million global viewers.

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It is worth noting that TSM, ranked by Forbes magazine as the most valuable esports organization in 2020, with an estimated $410 million, also competes in games such as “Fortnite”, “Apex Legends” and “Super Smash Bros.”

At $21 million per year, the 10-year deal with FTX matches what is sponsored in traditional esports.

FTX previously paid the Miami Heat $135 million in the NBA over the next 19 years for the naming rights for its stadium.

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