Recently the Danish CS:GO organization Copenhagen Flames has declared bankruptcy. Copenhagen Flames reports that the organization is experiencing a severe financial crisis. Consequently, it will not be present at the last CS:GO Major in Paris.
Copenhagen Flames declares bankruptcy
The executive director of Copenhagen Flames, Steffen Thomsen, has been responsible for announcing the sad news that the organization was in bankruptcy. In addition, he has reported that the Danish organization, at this time, has already laid off all staff.
Employing a letter, Thomsen has communicated that Copenhagen Flames ends all its activities after seven years in the CS:GO competitive scene. On the other hand, Thomsen comments that during the last nine months, his organization has experienced a very difficult situation. He was referring to the fact that it was impossible to get new partnerships, and it was not possible to expand existing partnerships.
In the same letter, the CEO confirmed the trend that esports organizations are experiencing. He claims that Copenhagen Flames was hit hard by cuts in marketing budgets. Thomsen claims that this was the organization’s most important source of revenue.
On the other hand, Thomsen also emphasized the consequences of being unable to be part of the prestigious CS:GO Major event. It was especially considering that the organization had grown after participating in previous competition editions.
Dear Flames fans and followers, it has been an absolute privilege to be a part of your lives for the last 7 years.
We have filed for bankruptcy.
Please read our statement here:https://t.co/ncB6wh2NSl
Thank you and BringTheFlames ♥️🔥 pic.twitter.com/h29Ssp3hlv
— Copenhagen Flames (@CPHFlames) May 1, 2023
Problems at Copenhagen Flames
It is important to note that Copenhagen Flames, in 2021 and 2022 qualified for the PGL Stockholm and PGL Antwerp. The team even got to compete in the Ambers playoffs.
So Thomsen says that at that time, the organization had great momentum and was in a strong financial position. However, an unexpected situation left the organization unbalanced. We are discussing all Danish players leaving the team to join Fnatic, G2, and Heroic teams. So Copenhagen Flames had to hire a new team, this time made up entirely of Danish players.
However, the new Copenhagen Flames CS:GO team did not achieve the expected results. The team failed to qualify for the IEM Rio and the upcoming BLAST Paris Major.
We should keep in mind that the qualification of any team for the Majors guarantees significant income to the organization. But that’s not all. The recognition and exposure of the team are much higher.
At the same time, Thomsen says that after the team was left out of these important competitions, they tried to avoid the financial crisis. The organization cut costs and tried to find different sources of income, but it was not enough.
In addition, Thomsen says that investors were completely discouraged; consequently, the organization has had to close its doors.
The Copenhagen Flames organization was running a CS:GO academy, a men’s CS:GO team, and a women’s CS:GO team before going bankrupt.