North American (NA) League of Legends Championship Series, LLC (Riot) to allow courts to “force FTX to reject contract” or allow Riot to terminate strategic sponsorship deal with FTX filed an FTX bankruptcy suit seeking .
According to Riot, the agreement signed on August 21, 2021 is non-transferable and, as Riot states, “Therefore, FTX cannot take it over under bankruptcy law.”
Riot has stated that it is ending its sponsorship with FTX for the following reasons:
“Reputational damage has already been caused to Riot as a result of the very public stigma caused by the debacle that preceded FTX’s bankruptcy filing.”
In addition, Riot has announced its own right to terminate contracts for violations of the moral clause stating:
“33. The parties have agreed to a mutual morality clause giving the parties the right to terminate the contract.”
This provision is relaxed if the other party “does anything or becomes involved in any situation or event” that “brings the affected party’s products and services to serious public disgrace.” grants either party the right to terminate this Agreement in any way it cannot.
Riot also said it “faces material and non-monetary harm due to its continued relationship with FTX.”
On January 11, 2023, the United States (US) Bankruptcy Court for the District of Delaware will hold a hearing on FTX Trading Ltd.’s Chapter 11 bankruptcy filing.
Riot Games is the developer and publisher of the popular multiplayer online video game, League of Legends, and Riot hosts a live event competition featuring the game.
