TSM’s deal with FTX compares favorably to venue naming rights

By James Fudge
FTX put its name on the Miami Heat’s home arena in a 19-year, $135 million deal in March.Jock Fistick / South Florida Business Journal

Cryptocurrency exchange FTX Trading is a relative newcomer to the world of sponsorships and naming-rights deals for sports, but in 2021 it has signed deals with the Miami Heat, MLB, MLBPA and more.

 

Only two deals have a publicly disclosed value attached to them: FTX Arena, home of the Miami Heat; and esports organization TSM FTX. Surprisingly, TSM’s deal with FTX has a shorter term and a higher value, according to data from SBJ Atlas.

At the end of March, FTX finalized a 19-year, $135 million deal with Miami-Dade commissioners to rename the arena the Heat have played in since 2000.

In early June, FTX signed a 10-year, $210 million deal to rename the organization TSM FTX, making it the biggest naming-rights deal in esports history.

In a July funding round that included SoftBank Group Corp., Sequoia Capital, Third Point, and more, FTX raised $900 million at an $18 billion valuation.

TSM founder and CEO Andy Dinh said that while it is difficult to compare naming-rights deals between esports and traditional sports because the majority of esports organizations do not have their own venues, the deal made with FTX is the most comparable with stadium naming rights (see chart).

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