David Beckham’s eSports organisation is currently struggling financially. Once again, they are in the red, but this is due to investments that are yet to pay off
As their financial report shows, Guild Esports made a loss of £4.96 million – the equivalent of about €5.79 million. Not the first red figures for the British team: from October to March 2021, the loss was still 4.28 million pounds.
That the negative figures have increased by £680,000 “reflects investments in teams and operational staff, corporate infrastructure, the Guild Academy and content creation”, the report says. At the same time, these are “designed to support growth and establish Guild as a leading global organisation for eSports teams”.
Consequences have already been drawn by the organisation. “As a result of growing economic uncertainty and challenging market conditions,” there has been extensive “supplier rationalisation and headcount adjustment.” Specifically, 15 employees have been laid off since March 2022.
Investment in the soil and the future
Despite this, investment continues apace. Since 29 June, the headquarters of the organisation and the Guild Academy are now in Shoreditch, a London tech district. A ten-year lease has been signed.
These expenses for the new headquarters and the Academy are also a reason for the loss. But it is precisely in these that CEO Kal Hourd sees future potential: “With the opening of our new global headquarters and Academy, we have reached another important milestone, providing us with further commercial opportunities to drive growth.”
After all, revenues increased by 195 per cent to £1.09 million. That compares with £0.37 million in the period from October 2020 to March 2021.
In sporting terms, on the other hand, there are few worries at present. Henrik ‘Hen’ McLean recently won the Fortnite Champion Series Grand Royale in November and the Fortnite Champion Series EU Final in March. In FIFA, Nicolas ‘Nicolas99fc’ Villalba triumphed in the eChampions League and qualified for the FIFAe World Cup in Copenhagen.
