News Profit's Takes

Guild Esports Ends Partnership With Unnamed Fintech Company

The United Kingdom-based esports organization Guild Esports recently announced it had terminated a partnership with an unnamed European financial technology company. In a press release, Guild said the partnership cancellation came because of “delays in the sponsor’s launch and the payment of sums” of money.

“We have been very accommodating and patient about this contract but have decided to terminate it due to increasing uncertainty over their launch plans,” said Kal Hourd, the chief executive of Guild Esports. “We are in active negotiations for new sponsorship deals and look forward to announcing these soon.”

The partnership was first announced in October of 2020. The unnamed organization was expected to pay $4.94 million to Guild Esports between 2020 and 2022.

According to Guild, the partnering company was supposed to make payments to the esports organization following the official launch of the partnership. However, Guild said that a timeline for the launch was never announced, and they had received no payments from the unnamed business.

The Profit‘s Take:

Guild’s a public company, so their shareholders have to be upset about this because $4.9 million is a pretty significant deal. Maybe it was wrong of Guild to announce this agreement since they never ended up naming who the partnering company was. When they first revealed the deal, I knew something here smelled funny. It’s not a good look when you can’t even say the name of the company you’re partnering with. If the name does leak, I don’t think the company will have the chance to sponsor another esports-related business.

(All information was provided by Esports Insider)

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