Popular eSports org Sentinels is in financial trouble amid MASSIVE spending on content creator, staff and player salaries
Will Sentinels bounce back from bankruptcy?
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A few weeks earlier, popular North American eSports organization Sentinels was listed on the investor crowdfunding platform StartEngine on August 4 after a successful testing phase. It let fans buy shares for their favorite website and was supposed to get the organization a lot of cash inflow. However, things are not looking as good as they seemed.
They are said to be raging through their funds and could soon be going bankrupt. The listing allows fans to own a piece of Sentinels through shares, giving them benefits and perks. Since the company is running out of money, they are projected to only run for another 2-3 months, if not met with their investment needs, according to the latest reports.
Since Sentinels recently opted for crowdfunding, they have announced it publicly. As they are desperate for a changing financial breakthrough, they have released a memo on their investor page. They even mention that they will “be in financial trouble if it fails to raise substantial funds”.
Sentinels reportedly are spending $700,000 a month!
According to the memo posted by the company itself, they are spending almost $700,000 monthly on player, staff, and content creator salaries, along with merchandise inventory. Having Valorant, Halo, and Apex Legends under its wings, Sentinels have multiple pro players and content creators for their respective games. Tarik ‘Tarik’ Celik, Daphne ’39daph’ Wai, Brandon ‘Aceu’ Winn and Jared ‘Zombs’ Gitlin are some of the content creators Sentinels have currently.
After the unsettling news had been publicized, the company is said to shut down in another 2–3 months if the situation does not change. However, if they do manage to succeed in crowdfunding, they are said to be able to survive another 4-5 months. To succeed, the memo says they would need $1.2 million approximately.
Many have speculated for a long time that eSports would not be a profitable venture financially whatsoever. However, there are multiple schools of thought on this take. People have now been blaming eSports organization for not managing their spending needs. This follows after the disastrous performance in the Valorant competitive scene as things are looking to play downside for the competition.
A few months back popular streamer Disguised Toast who stepped foot in the eSports competitive scene for Valorant and League of Legends, revealed that he is set to lose almost $1M by the end of 2023. This was also due to mismanagement and the cruel truth of eSports.
It can be surely considered as sad news. However, The Sentinels “X” admin is still posting some bangers on X.
This incident is now raising eyebrows in the comparison of the eSports scene overall. As many have speculated before, they do not see the league succeeding financially in the long term. The company’s CEO, Rob Moore, has however revived hope as he tweeted out saying “The Sentinels are here to stay!“. Fans can expect some new releases and signings in the coming time by the org.
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Mukul Dutt
(550 Articles Published)