TSM Hitting Pause on Some Esports Efforts

The Los Angeles-based esports organization TSM is scaling back its competitive operations across multiple titles. This strategic shift follows significant financial instability stemming from the collapse of the cryptocurrency exchange FTX, which had previously entered into a ten-year, $210 million partnership with the organization.

The organization is currently evaluating the potential sale of its League of Legends Championship Series (LCS) franchise slot. Beyond its flagship League of Legends operations, TSM maintains a presence in several other competitive titles, including Fortnite, Valorant, and Apex Legends, the latter of which includes both a standard ALGS team and an all-women squad. While the organization is pausing various esports efforts, it intends to maintain the development and operation of its Blitz gaming application.

These findings, reported in March 2023, highlight the broader volatility within the esports industry as organizations grapple with the loss of major sponsorship revenue. The information is based on industry reporting and accounts from multiple sources familiar with the organization's internal financial situation.