With around $700,000 due in monthly salaries, Valorant organization Sentinels could shut shop in 2-3 months

Sentinels are a huge name in the Valorant esports scene. However, based on information that’s recently been revealed, the organization is burning through their funds and could soon be going bankrupt.

While it’s a common notion that esports isn’t very profitable, the condition of the team is fairly concerning.

Sentinels has had some popular individuals on their Valorant roster. In July, the organization signed Michael “Shroud” Grzesiek, sending ripples through the competitive esports scene. Despite such a big signing, it hasn’t seen a lot of success in terms of finances.

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Financial condition of the Sentinels highlights the current status of the Valorant esports scene

Sentinels recently opted for crowdfunding. In their offering memo, the organization mentioned that they had to pay around $700,000 in salaries to all their staff.

Based on the current situation of their finances, they could operate for two to three months at most. However, if they did manage to successfully crowdfund, their operating tenure could extend upto four to five months.

These statements have raised many eyebrows, with players commenting that esports was never going to be a profitable venture. This situation has also drawn comments from other esports organizations, who have said they had to do what was necessary to survive.

Others have also pointed out that most organizations spend more money than they can earn, and that they need to have a proper gameplan. Things haven’t been looking favorable for the organization of late, considering the disastrous performance of the Valorant competitive scene.

Moreover, ever since the franchise league kicked off, the team was marred with internal controversies as well. While these instances might not have had an impact on their financial status, they might be the deciding factor when it comes to the crowdfunding venture.

The situation raises some other important questions too. Will Valorant ever be a profitable venture, considering that other organizations have started to lay off staff? Secondly, can Riot Games do anything to control the current situation?

After the formation of the franchise league structure, the entire competitive scene functions a lot like how major club football leagues function in Europe. For example, the UEFA Financial Fair Play regulations have come into play to prevent clubs from spending more than they earn, thereby ensuring their long term survival.

Considering Riot Games has a certain amount of authority in how the Valorant competitive scene functions, regulations like the one mentioned above should be implemented to protect organizations from going bankrupt in their race for glory.

Secondly, the teams themselves need to have a proper plan in place, especially when it comes to the financial side of things. It’s rather unfortunate that a team as popular as the Sentinels has to face such a predicament despite their contribution to the professional Valorant scene. It will be worth seeing what the future holds for the organization.