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LGD Gaming, previously known as PSG.LGD from 2018 to 2023, is a Chinese esports organization considered a Dota 2 powerhouse from the region. In the past week, speculations have surfaced claiming that the organization could be on the verge of bankruptcy.
On 24th March 2024, a video was posted on YouTube showcasing a montage of statements by former and current Dota 2 players associated with LGD Gaming including Wang “Ame” Chunyu, Yang “Chalice” Shenyi, and Lin “planet” Hao, hinting towards the organization going bankrupt.
The crux of these statements was that LGD Gaming players were not receiving their rightful wages at an acceptable timespan. Additionally, a speech from LGD Gaming’s General Manager, Pan Fei, added more weight to the present suspicions.
Ame, Chalice, and Planet Hint at LGD Gaming Going Bankrupt
“LGD’s salaries are being paid by my previous bonuses. So I’m essentially LGD’s sponsor,” said Chalice in a commentary video during The International 2021. He revealed that when he was transferred to EHOME in 2020, Chalice expected to receive his pending bonuses and wages from LGD Gaming.
Chalice received confirmation from the organization that he would be paid soon but never received the promised amount.
Interestingly, Chalice went on to candidly reveal that he was not the first in this situation, and former LGD Gaming player Ren “old eLeVeN” Yangwei and others also didn’t receive their bonuses from the organization.
This revelation from Chalice hinted that the financial situation of LGD Gaming has been pretty bad since TI 10 and is not a new development.
Furthermore, Ame and Planet revealed that LGD Gaming could no longer afford the Shanghai base and had moved their base to another city in China called Changsha.
During one of his live streams, former LGD Gaming player Ame said “Since they’re no longer renting out the Shanghai base, they should pay me back my money right?” revealing that even Ame was on the list of players who had not received their payment from the organization.
The video also showed a clip of LGD Gaming’s General Manager Pan Fei’s speech during his TEDx Talk.
During his speech, Pan Fei revealed that before the pandemic in 2020, LGD Gaming had raised the wages of the players to match another Chinese Dota 2 organization called Elephant’s highly competitive wages.
However, due to the pandemic, LGD Gaming had no sponsor for two years and eventually blew through its treasury while trying to sustain its team and players.
Pan Fei also broke down the cost of operating a Dota 2 team and estimated the price to be around 9 Million Yuan per player (~ $12,46,727.70 USD) in 2019. He revealed that sponsorships played a vital role in paying for the players’ salaries which amounted to 10-12 Million yuan per year.
At the end of the day after factoring in all of these expenses Pan Fei said the finances were manageable considering LGD Gaming would generate income through tournaments.
However, Pan Fei went on to say that since the pandemic, sponsorships were rare and even 3 Million yuan per year was considered good therefore it was hard to pay wages to LGD Gaming players.
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