So bleak has been the recent nadir for esports as an industry that any form of financial stability is seen as the product of excellent management and incredible foresight. For both GamersFirst and Galaxy Racer, revelations on Nov. 30 were just the latest blows in their scramble for survival.
Let’s begin with G1, an organization whose downfall has been a multi-month car crash that spirals with every new post. Most well-known for its relatively successful Rocket League squad, the org has since dropped this trio alongside a Halo roster. Its only presence in esports nowadays is a TrackMania squad and the unmistakable waft of lies and deceit.
ShiftRLE reported on Dec. 30 that G1 owes over $230,000 in outstanding payments. This number could balloon further as many ex-employees have yet to be counted. The viciously tight-knit Rocket League community has long been harassing the Austin-based company upon learning how it handled the payout of Women’s Car Ball players and staff. Or, more accurately, how it was not handling it.
The drama went viral in August when Esports Insider reported on the state of affairs, likely a catalyst for the subsequent progress toward compensation for many. According to Shift, only on Nov. 22 were WCB players paid out for their latest set of tournaments. Staff salaries are still in limbo, including many casters who covered the events.
“I was paid before many, and I thought that was the case for us all. It was not,” experienced commentator Jeff “DangerTaco” Skalamera said. “My heart hurts as a freelancer seeing these players, staff, and contractors struggle.” While professionals such as DangerTaco are pleading for contracts to be honored, G1 has announced plans for a “multi-million dollar” headquarters to be built into 2024. Bewildering.
Life on X (formerly known as Twitter) has been understandably vitriolic for the G1 social media team. The pressure got to one individual who went on a blocking spree before being shut down, according to an official company statement. Speaking of, that is sadly where the team of HerGalaxy (the women’s esports branch of Galaxy Racer) find themselves this evening.
“We are adapting our strategy to align with evolving trends and opportunities,” a statement read. “As part of this strategic shift, we are restructuring our US operations to focus primarily on influencer and content creator programs… we will be temporarily pausing our esports activities.”
In the blink of an eye, HerGalaxy’s 50-strong staff were laid off mid-meeting and kicked without warning. To make matters worse, according to ex-employee Bethany “Indyburgh” Pyles, backpay had been piling up for months, making this situation sound eerily similar to the attempted disassociation of G1 from WCB. The layoffs were, seemingly, a direct result of demand letters threatening a class action lawsuit.
“Disgusting,” exclaimed Sophia ‘Sophchan’ de Ipanema in response to Indyburgh’s post. “How can they mistreat their staff so badly?” Unfortunately, what we are all seeing now is the result of over-ambitious investors expecting a return simply by being early to the esports party. The inflated growth of the industry has left us with some truly exceptional events to remember but a very uncertain future.
Whether Esports Advocate sources are to be believed or otherwise in their assertion that Galaxy Racer has sent uncompleted payments is beside the point. The complete absence of any consideration of the human factor is a startling reminder that there are too many business owners who fly by the seats of their pants with 2023 coming to an end.
I contribute to the conversation my personal experience with a team known as SMPR Esports. I wouldn’t be surprised if you haven’t heard of this organization. It bought the unaffiliated Top Blokes Rocket League trio in 2021—players I had the pleasure of personally covering via commentated watch parties. Getting paid for my work took months of politely requesting updates. It seems that SMPR has also disappeared—July 2023 was the last anybody heard from anybody involved with the company
Lessons need to be learned sooner rather than later. SMPR, Galaxy Racer, and G1 are just the most recent headlines for now. It could get an awful lot worse should more precautions be put in place.
