Sentinels, the premier North American organization recently shed some light on its ongoing financial crisis. While esports is a loss-incurring venture for many, seeing an organization of Sentinels' scale struggle financially is a shocker for fans.
Previously, Sentinels announced that they would be opening a platform where fans would be able to purchase a part of the Company’s shares and have access to some premium features of the organization. An offering memorandum on Sentinel’s crowdfunding page, StartEngine says the company is in trouble after massive spending on players, staff, and content creators.
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Sentinels In A Financial Crisis Situation After Spending Millions Of Dollar
On August 4, after a successful testing phase, StartEngine listed Sentinels on its site. The organization claimed more than 100 individual investors reserved shares during their initial phase. However, from the looks of it, Sentinels is going through a difficult time after spending millions and millions of dollars in the organization.
Under a section in “Liquidity and Capital Resources,” the organization hinted at when operations could end if they cannot raise sufficient funds within a particular time period. According to reports, if crowdfunding is not a success, Sentinels will only be able to run for the next 2-3 months. However, even if the crowdfunding is a success Sentinels will only be able to operate for 4-5 months.
Much of these issues are due to Sentinels paying more than 700,000 USD per month to players, teams, and staff. Their sponsor, GFuel is a major factor in their funding. Sentinels field rosters in multiple games including Fortnite, Valorant, Halo, and Apex Legends. To add that up, they have some of the biggest content creators like Tarik “Tarik” Celik, Daphne “39Daph” Wai, and Brandon “Aceu” Winn. Although the future remains unsure, this might be the last few months of fans seeing Sentinels operating in the esports industry.
