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LGD Gaming is reportedly facing bankruptcy

LGD, a Chinese esports team, was regarded as the region’s dominant Dota 2 team. There have been rumors circulating for the past week suggesting that the company may be close to filing for bankruptcy. A YouTube video featuring a montage of words from Wang “Ame” Chunyu, Yang “Chalice” Shenyi, Lin “planet” Hao, and other former and current Dota 2 players affiliated with LGD Gaming was uploaded on March 24, 2024. The statements alluded to the organization’s impending bankruptcy. The main contention of these claims was that gamers of LGD Gaming were not getting paid in a timely manner. Furthermore, Pan Fei, General Manager of LGD Gaming, gave a statement that strengthened the current accusations. Check out this information and more of our articles to help your dota 2 betting adventures!

The investigation lists several alleged financial issues that LGD allegedly encountered. Among the main issues brought up were LGD’s operating expenditures, which increased to $20 million annually during the pandemic, a substantial rise from the organization’s pre-pandemic spending of only $9 million annually. Numerous variables were identified as the cause of this financial burden. Among these are higher running costs and lower sponsorship income, which fell from $10 million to $3 million a year. Chalice disclosed that upon being moved to EHOME in 2020, he had anticipated receiving his outstanding bonuses and salary from LGD Gaming. Chalice was informed by the organization that he would get paid shortly, but he never got the money that was promised. Chalice revealed honestly, to the surprise of many, that he wasn’t the only one in this circumstance, others, including Ren “old eLeVeN” Yangwei, a former player of LGD Gaming, also failed to get their bonuses from the company. Chalice’s disclosure suggested that LGD Gaming’s financial predicament has been dire since TI 10 and is not a recent development. In November 2023, Wang “Ame” Chunyu openly expressed doubts about LGD Gaming’s capacity to continue supporting its core Dota 2 team due to financial constraints. Amid rumors that LGD would create a backup squad, Ame voiced doubt, doubting the viability of this growth in light of the current budgetary limitations. Ame and Planet also disclosed that LGD Gaming had relocated their base from Shanghai to Changsha, China, since they could no longer afford to maintain the Shanghai location

LGD Gaming is reportedly facing bankruptcy
LGD member, Pyw, competing on stage

A snippet of General Manager of LGD Gaming Pan Fei’s TEDx Talk was also included in the video. In his speech, Pan Fei disclosed that before to the pandemic in 2020, LGD Gaming had increased player salaries to parity with the extremely competitive pay offered by Elephant, another Chinese Dota 2 club. But because of the epidemic, LGD Gaming was left without a sponsor for two years, and in the process of attempting to keep its players and team afloat, it eventually ran out of money

The reports regarding LGD Gaming’s financial difficulties depict the current battle an esports organization has had to fight to stay in business. Although the purported financial issues point to a time of uncertainty, LGD’s track record of accomplishments and sustainability bears witness to its tenacity. It would be unfortunate to see such an institutional body finally fail while supporters wait for more information regarding LGD’s financial difficulties

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