The Esports Advocate
Esports business news: deals, legal, and governance.
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FaZe Clan Needs to Play Several Eco Rounds for a Chance to Win in the Nasdaq Game
FaZe Clan’s financial performance for the second quarter of 2023 reveals a period of significant instability, characterized by shrinking revenues, rising net losses, and a decline across all primary key performance indicators.
- FaZe Clan reported a net loss of $14.36 million for Q2 2023, a 54% increase in losses compared to the $9.32 million loss recorded in the same period of 2022.
- Total revenue for Q2 2023 fell to $11.69 million, representing a 37.8% year-over-year decline driven primarily by a $8.8 million drop in brand sponsorship revenue.
- The number of significant sponsors for the organization was cut in half, falling from 10 in Q2 2022 to just 5 in Q2 2023.
Amazon Games Hires Industry Vet Wei Yue to Lead Competition and Esports Efforts
Amazon Games has appointed industry veteran Wei Yue as its new director of competition and esports.
- Amazon Games has hired industry veteran Wei Yue as its new director of competition and esports.
- Yue previously spent over four years at Ubisoft Montreal, where he served as esports director and product director of esports for Rainbow Six Siege.
- Prior to his time at Ubisoft, Yue worked at Activision Blizzard for nearly nine years, holding various esports-related roles including associate manager of esports for the EMEA region.
SQID Completes Divestment of The Chiefs Esports Club Parent ICON Esports
SQID Technologies Limited has finalized the divestment of its subsidiary, ICON Esports Pty Ltd, the parent company of the Australian gaming and esports brand The Chiefs Esports Club.
- SQID Technologies Limited has completed the sale of its 100% stake in ICON Esports, the parent company of The Chiefs Esports Club, to BLSS Holdings Pty Ltd.
- The transaction is valued at $1 million AUD ($650,000 USD) plus a tiered revenue share based on ICON's EBITDA over the next three years.
- SQID will receive a 10% share of ICON's EBITDA for the first and second years, followed by an 8% share in the third year.
NRG Esports Promotes Hauk Nelson to Director of Business Development
NRG Esports, a Los Angeles-based professional gaming organization, has promoted Hauk Nelson to the position of Director of Business Development.
- NRG Esports has promoted Hauk Nelson to the position of Director of Business Development.
- Nelson previously served in sales and as the company’s blockchain strategy and development lead at NRG.
- During his tenure as partnerships manager at NRG, Nelson managed sponsorships with major brands including T-Mobile, McDonald’s, Coinbase, Levi’s, The General, and Hot Pockets.
Allied Gaming & Entertainment Q2 2023 Financial Results
Allied Gaming & Entertainment reported significant financial improvement for the second quarter of 2023, ending June 30, characterized by substantial revenue growth and a narrowed net loss.
- Allied Gaming & Entertainment reported Q2 2023 revenue of $3.3M, representing a 182% increase compared to $1.2M in Q2 2022.
- The company significantly narrowed its net loss to $700K in Q2 2023, down from a $3.7M loss in the same period last year.
- Total costs and expenses decreased by 2.4% year-over-year to $4.7M, driven by reductions in live production costs (31.1%), general and administrative expenses (19.6%), and depreciation/amortization (73.7%).
Amazon Veteran Joins GGTech Entertainment
GGTech Entertainment has appointed Eduardo García Riaño as its new chief product officer to spearhead the company’s global expansion efforts.
- GGTech Entertainment has appointed former Amazon executive Eduardo García Riaño as its new chief product officer to lead the company's global expansion.
- García Riaño brings over eight years of experience from Amazon, where he previously served as global head of sponsorships in esports and gaming and head of EU retail gaming and esports.
- The appointment follows a $12.4 million USD investment secured by GGTech from Glisco Partners and Heart Beat.
Astralis Shareholders Approve Move to Delist From the Nasdaq First North Growth Market Denmark
Shareholders of the Danish esports organization Astralis have officially approved a proposal to delist the company from the Nasdaq First North Growth Market Denmark.
- Shareholders of the Danish esports organization Astralis have officially voted to delist the company from the Nasdaq First North Growth Market Denmark.
- Following the approval, the company's shares will remain tradable for a 10-week period before they are officially removed from the exchange.
- The decision to go private follows a strategic business review initiated by the board of directors in March 2023.
G1 Settles Back-Pay Issues With Women’s Car Ball Players and Staff
Gamers First (G1) has successfully resolved outstanding payment obligations to players and staff associated with the Women’s Car Ball (WCB) league.
- Gamers First (G1) has paid outstanding debts to Women’s Car Ball (WCB) players and staff following reports that payments had been withheld since March 2023.
- The resolution occurred after the eight teams qualified for the WCB Championship threatened a collective boycott of the event.
- The WCB Season 5 Championship is scheduled to proceed as planned on August 19–20, featuring a total prize pool of $10,000 USD.
Sentinels Officially Launch Equity Crowdfunding on StartEngine
The Los Angeles-based esports organization Sentinels has officially launched an equity crowdfunding campaign on the platform StartEngine.
- Esports organization Sentinels has officially launched an equity crowdfunding campaign on the StartEngine platform.
- The company is seeking to sell approximately 4% of its total equity, based on a company valuation of $30.9 million.
- Investors can participate with a minimum buy-in of approximately $300 USD.
FACEIT Brings PUBG Mobile Challenger Cup to EMEA
The esports platform FACEIT, a subsidiary of the ESL FACEIT Group, has entered a partnership with publisher Krafton to integrate the mobile battle royale title PUBG Mobile into its competitive ecosystem.
- ESL FACEIT Group’s platform, FACEIT, has partnered with Krafton to integrate PUBG Mobile into its competitive ecosystem for the EMEA region.
- The partnership includes the launch of the PUBG Mobile Challenger Cup, which features a total prize pool of €10,000 ($11,000 USD).
- Qualifiers for the Challenger Cup begin on August 10, 2023, with the finals scheduled for September 9–10, 2023.
G1 Under Fire for Management of Women’s Carball League
Gamers First, a Texas-based esports organization founded by former NFL player Kenny Vaccaro, is facing significant scrutiny regarding its financial management of the Women’s Carball League.
- Gamers First (G1) is facing allegations of failing to pay prize money to teams that competed in Season 5 of the Women’s Car Ball (WCB) league.
- Reports indicate that WCB staff and members of G1’s own Rocket League roster have not received payment since March 2023.
- Claims suggest that some players who participated in the G1 Invitational eight months prior to the August 2023 report remain unpaid.
Valve Plans Sweeping Changes to Counter-Strike Esports Ecosystem
Valve is implementing significant structural changes to the professional Counter-Strike esports ecosystem to foster a more open and meritocratic competitive environment.
- Valve is mandating a shift toward an open Counter-Strike esports ecosystem by 2025 to eliminate gated access caused by exclusive business relationships.
- Tournament organizers must remove conflicts of interest, meaning they can no longer maintain unique business partnerships with participating teams.
- All tournament invitations must be determined by Valve’s official regional ranking system or open qualifiers rather than partner-based slots.