North America (NA) League of Legends Championship Series, LLC (Riot) filed a petition in the bankruptcy case of FTX requesting that the court “compel FTX to reject the Settlement” or allow Riot to terminate the Strategic Sponsorship Agreement it has with FTX. .
According to Riot, the Agreement, signed on August 21, 2021, is non-transferable “and therefore cannot be assumed by FTX under the Bankruptcy Code,” as stated by Riot.
Riot says that it is looking to end the sponsorship with FTX due to the following:
“The reputational damage already done to Riot as a result of the extensive public discrediting caused by the debacle that preceded FTX’s bankruptcy filing.”
In addition, Riot has announced its independent right to terminate the Agreement due to violation of the morality clause, which states:
“33. The parties agreed to a reciprocal morality clause, granting both parties termination rights.
This clause gives either party the right to terminate the Agreement if the other party “commits any act or is involved in any situation or event” that brings “the products and services of the affected Party into material public disrepute” of a way that cannot be mitigated.
Riot also noted that it “has faced significant monetary and non-monetary damages due to its continued association with FTX.”
On January 11, 2023, the United States (US) Bankruptcy Court for the District of Delaware will hold a hearing on the Chapter 11 bankruptcy filing of FTX Trading Ltd.
Riot Games is the developer and publisher of the popular online multiplayer video game League of Legends, and Riot hosts live event competitions featuring the game.
Journalist at CryptoSlate
Josh has been writing for a decade and is passionate about mainstream crypto adoption, bringing positive financial change to the masses through crypto and decentralized finance as a whole.
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This post Riot Games to cancel FTX sponsorship due to “reputational damage”
was published first on https://cryptoslate.com/riot-games-to-terminate-ftx-sponsorship-due-to-reputational-harm/