Danish esports organization, Copenhagen Flames, has recently declared bankruptcy and let go of its entire staff. CEO Steffen Thomsen revealed that the decision was made after the club failed to acquire the necessary funding to sustain its operations.
Just a couple of weeks prior, the organization had announced that it was seeking an investment of 5 million DKK ($740,000 USD) to balance their books and launch a series of initiatives that would ensure their profitability for the years ahead.
Copenhagen Flames was founded in 2016 and was known for developing young CS:GO players and selling them for a profit. The team made history in 2021 by qualifying for PGL Major Stockholm, followed by a repeat performance at PGL Major Antwerp, where they even managed to reach the playoff stage.
However, after the Major in Belgium, the team fell apart as players joined teams like G2, Heroic, and Fnatic. The organization swiftly assembled a new lineup of Danish players, but success proved elusive, with the team unable to qualify for either IEM Rio or the BLAST Paris Major.
Thomsen expressed his disappointment at the turn of events and took responsibility for the outcome. He lamented the fact that Copenhagen Flames, like many other esports clubs, has been struggling financially for the past six to nine months, with marketing budgets being slashed due to the global financial crisis.
The organization had set a goal of participating in at least one Major each year to secure income, brand recognition, and exposure, but missing out on the past two Majors had hurt them financially.
Copenhagen Flames is not the only esports organization to close down due to the current economic crisis. Tricked, another Danish esports organization, filed for bankruptcy after over a decade in the business.
Despite the setback, Thomsen assured that Copenhagen Flames would prioritize the best interests of their players and staff. He expressed his immense pride in what the organization had achieved in the past seven years without ever compromising their values, mission, or conscience.
With the esports scene continuously evolving, Thomsen believes that it is crucial for organizations to have a solid foundation built on sporting success. This, he says, is necessary to build an independent club that can weather the ups and downs of the esports industry.
The bankruptcy of Copenhagen Flames serves as a reminder that even successful organizations in the esports industry are not immune to financial struggles. The organization’s story highlights the importance of building a strong foundation and securing financial stability for long-term success in the competitive world of esports.
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