It has been a rocky few months for the Esports Entertainment Group. At the start of the year, stock prices plummeted, there was a severe EBITDA downturn for the firm, and talk surfaced of the need to sell off assets to offset some critical financial struggles. There are indications that EEG will target its esports investments first of all, in an attempt to cut costs as rapidly as possible. This path of action may already be underway, as EEG’s Marketing Director, Magnus Leppaniemi, announced his departure from the firm today.
It may be an unrelated departure, but Leppaniemi was heavily involved with the esports-based operations of the company. This news comes just one month after the Director of Esports Betting, Bux Khalid Syed, also announced his resignation from the firm. In May of this year, the Esports Entertainment Group announced that it would be ‘dramatically simplifying’ its esports offerings in order to quite literally survive as an organisation.
Time To Take Action
At the moment, the world sits on a precipice, suffering from the increasing pressures and struggles brought on by a global economic downturn. Recently, the esports industry has found itself plagued by this downturn, and many organisations in the space are tightening their belts and taking swift action in order to survive. For some firms in the space, the ultimate decision has been made to abandon the industry altogether.
For instance, at the start of August, it was revealed that EBET would leave behind its esports investments. This news came amidst a flurry of lay-offs, with the firm detaching itself from ‘underperforming esports resources’. Unfortunately, these financial concerns are permeating the very core of the competitive organisations that drive the industry. Now, following two key departures, it seems that the Esports Entertainment Group may be heading down a similar path.
As he announced his resignation from EEG, ex-Marketing Director (and ex-President of Esports) Magnus Leppaniemi posted a statement:
‘Everything has an end, and tomorrow August 31st, is my last day at Esports Entertainment Group. It has been a journey with ups and downs, great accomplishments, and some mistakes, but that is a part of all great journeys.’
At present, EEG is struggling to recover from a stock crash in February, when the firm lost almost two-thirds of its value in the market. While action is being taken to right the ship, EEG’s CEO, Grant Johnson, has spoken out about the road ahead:
‘As we look ahead, the building blocks for further growth remain firmly in place. However, today’s market conditions are different and, as such, our team has adjusted to focus on achieving breakeven as quickly as possible.’
While the key resource departures in Leppaniemi and Syed may be unrelated, EEG is expected to continue along the path of shedding its esports skin. Now, the firm will focus on its SaaS technology offerings, tournament services, and its wagering platform.