The Sentinels esports organization is in financial trouble and launched a crowdfunding campaign late last week to stay afloat. In doing so, they have definitely come under criticism, as player salaries are very high and one wonders how well the Sentinels have been managing and how close they are to financial ruin now.
According to a memorandum on the StartEngine crowdfunding page from the Sentinels, the organization has provided insight into its finances. It can be seen that the company has shelled out an incredible amount of money for salaries of players, managers, streamers, etc. Sentinels have lineups in VALORANT, Apex Legends, and Halo.
Sentinels try crowdfunding to stay alive
Late last week, Sentinels were listed on investor crowdfunding platform StartEngine. Reportedly, over 100 individual investors have reserved shares in the initial phase. This allows fans to contribute their own money to the Esports organization, and the more you spend, the more benefits you get, for example, even a tour of the Sentinels’ office (you’ll have to spend quite a bit to get that, though).
Sentinels Is At Risk Of Running Out Of Money
Sentinels is currently spending over 700K a month, and can currently only run for 2-3 months if the crowdfunding efforts fail.
Read more: https://t.co/8WKOppNVdw pic.twitter.com/MdzimkAxL8
— Valorant Updates (@ValorantUpdated) August 8, 2023
The Sentinels have addressed their financial situation, stating that they are in financial trouble and that the organization is on the verge of going out of business. The memo states that if the company fails to raise additional money, it will only be able to operate for 2-3 months. It also says that if the company reaches its maximum funding goal of over $1.2 million, it will be able to stay afloat for four to five months.
According to the document, Sentinels spends almost $700,000 per month on salaries for players, staff and content creators – the CEO, Rob Moore, gets an annual salary of $360,000. With such consumption, it’s not surprising that the organization is in trouble.
In addition to crowdfunding, the Sentinels have announced other initiatives to engage fans. In mid-May, the organization launched Sen Society, a subscription service that gives fans exclusive access to players, content and merchandise.
Criticism from Esport Community for Excessive Spending
Several representatives from the Esports industry have criticized the Sentinels for their excessive spending. Rob Stamey of G2 Esports in North America had this to say about the spending: “We shouldn’t be surprised if everything becomes sh***** because “egos” have put people’s livelihoods on the line based on business decisions they’ve made that mostly benefit themselves rather than the core of the business, the employees and players,” he said. And ex-G2 CEO Carlos Ocelote also has his opinion.
Sentinels have reported that they will be able to operate for only 2-3 months if they fail in their efforts to raise money
The company is currently spending almost $700k a month in salaries (players, creators and staff) + merchandise inventory pic.twitter.com/phSOepBNyr
— Valorant News (@ValorINTEL) August 8, 2023
“A few weeks ago I said that crowdfunding was a red flag and an admission of defeat for a company so late in the game. I didn’t expect it to be this bad. They are literally approaching the limit of the legal requirements needed for RegCF crowdfunding. Even if they get the funding, they could go under,” finds Esport journalist Jacob Wolf.
So far, the Sentinels have already raised $65,000 with crowdfunding. However, that won’t even be enough to pay all the salaries for a month, assuming the salaries haven’t been cut.