David Beckham-Backed Guild Esports Reportedly Lost $6 Million in 6 Months

The world of Esports is constantly evolving with massive changes happening to organizations around the world all the time. This includes new investments, expansions and even buyouts as well. But, on the other hand, teams have also lost a lot of money because of these decisions. The most recent team to showcase that would be the David Beckham-backed Guild Esports.

The organization recently revealed their financial results, and it’s reported that the company lost $6 million in a six-month period till March 31, 2021 With the company massively expanding this year, it makes sense for Guild Esports to lose a lot of money.

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Guild Esports paying soccer star David Beckham handsomely

A bulk of Guild Esports’ expenses revolves around the face of the franchise in soccer star, David Beckham. The former Manchester United and LA Galaxy player signed a five-year $19 million deal last year. The organization has had to pay him $2 million after he signed the contract in October 2020.

Other than that, Guild Esports has also invested a lot this year. The UK-based Esports franchise has joined the professional scene of a lot of games including FIFA, Valorant and Rocket League as well. Along with that, they also started a new online Esports training subscription service called the Guild Academy. It launched in May 2020, and players above the age of 11 can learn and access training programmes, and analysis from the experts working at Guild.

Guild Esports has gained a lot of sponsorships as well

A loss of $6 million would worry a lot of people about the organization’s future. But, Guild Esports has invested heavily which has causerd them to go negative. An enterprise like the Guild Academy, and the cost to enter the Esports scene of different titles will be a lot. Along with that, they have also gained a lot of financial backing recently. Companies like Subway, Samsung and HyperX guarantees them of at least $10 million in revenue.

It remains to be seen if the company will enter the profit zone after investing a lot recently. With the backing of a global celebrity like David Beckham, Guild Esports shouldn’t have to worry a lot about popularity. But, they might be in trouble if the organization can’t be profitable soon after investing so much.

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