UK esports organisation Guild Esports has revealed that it is exploring a variety of financial solutions following a strategic review of the company that showed it has little cash left.
In order to meet its short-term liabilities, Guild Esports is considering measures such as securing additional funding, negotiating with creditors and reducing costs.
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Guild Esport noted that its liabilities total £1.36m until September 2024, however, its accounts receivable — the amount Guild is essentially owed — does amount to £1.52m. As of July 31st, the organisation’s cash position was £25,000.
In a release, Guild Esports also revealed that it is reviewing the company’s ‘strategic direction’, which includes potentially ‘disposing’ of assets to generate cash. Guild also mentioned the possibility of becoming part of a larger group.
Consolidation has become common in esports with many esports brands coming together over the last few years to become larger entities. Notably, this includes Ninjas in Pyjamas and ESV5 Group, Giants Gaming and EXCEL Esports, and Overactive Media, KOI and Movistar Riders all merging in recent memory.
The news of Guild Esports’ strategic review comes shortly after the organisation reported a £1.8m loss before tax for H1 2024 (October 1st to March 31st, 2024). In May 2024, Guild secured a new shareholder with Dubai-based investor Mr. Koshy Vinod acquiring around 66.7m shares, totalling 8.28% of voting rights.
Founded in 2020 and backed by football legend David Beckham, Guild Esports has gone on to compete in various competitive esports scenes. In 2024, the organisation announced its entry into Tekken and Apex Legends. However, this year has also seen Guild disband its Counter-Strike division. Alongside its competitive structure, Guild Esports has a commercial portfolio that includes the likes of Sky, Subway and hummel.
