In a startling development, esports powerhouse Evil Geniuses is contemplating a complete departure from the esports arena in light of disappointing financial reports and widespread layoffs.
Recently, Evil Geniuses and Golden Guardians have formally withdrawn from the North American League of Legends Championship Series (LCS) for the upcoming 2024 season. According to John Needham, President of Esports at Riot Games, this departure was a mutually agreed upon strategic decision in alignment with Riot Games’ new global approach for the North American region.
Beyond LoL, EG also dissolved their Dota 2 roster in the South American region, with no immediate plans for restructuring. Some of their players have already transitioned to Boom Esports.
Meanwhile, uncertainty surrounds their Valorant roster, which clinched the Valorant Champions 2023 in Los Angeles in August. Reports suggest that players and coaches are facing the tough choice of either leaving the organization or accepting substantial salary reductions.
Amidst these uncertainties, speculations arise that Evil Geniuses might be contemplating a comprehensive business restructuring before committing to any esports competitions in the upcoming year. Recent revelations, however, indicate that the situation within the organization may be irreparable, suggesting that EG could be on the verge of exiting the esports landscape.
A report from the Sports Business Journal reveals that EG’s owner, Peak6, has actively sought to sell the Seattle-based esports organization, either in its entirety or in parts, with unsuccessful attempts thus far. An insider close to SBJ even suggests that Evil Geniuses might be considering a complete exit from the esports industry before the conclusion of 2023.
As of early November 2023, reports indicate that EG has been operating with a drastically reduced staff. Approximately 20 employees across various departments and organizational levels have been terminated. The reports highlight instances of ineffective or poor leadership from upper management, including the termination of entire departments and delayed approval of travel costs days before events.
Considering these reports, it is indeed surprising to witness a prominent figure in the esports industry face such challenges after a history of big victories. Nevertheless, it serves as a cautionary tale for those entering the esports industry, emphasizing the importance of sound management decisions to avoid a similar fate.
