Sentinels, a prominent esports organization, is currently grappling with a precarious financial situation due to substantial expenditures on player, staff, and content creator salaries. The organization's crowdfunding initiative on StartEngine, an investor crowdfunding platform, aims to alleviate this financial strain. Nevertheless, Sentinels faces a challenging path to securing a spot in the playoffs.
Following a successful testing phase, Sentinels was introduced on StartEngine on August 4. This crowdfunding platform provides fans with the opportunity to invest their funds in exchange for ownership in the organization. This venture is accompanied by a range of perks contingent on the invested amount and the speed of investment.
However, Sentinels' financial predicament is outlined in an offering memorandum on the investor page. The document elucidates the organization's dire circumstances if it fails to secure substantial funds. The memo underscores that without additional capital influx, the organization will face financial jeopardy.
"If the company raises the minimum offering amount, and if the company is unable to raise additional capital through either existing shareholders or other outside sources of financing, we anticipate the company will be able to operate for 2-3 months," the memo stipulates.
Should Sentinels reach its maximum funding objective of over $1.2 million, it would be able to sustain operations for four to five months.
Sentinels allocates nearly $700,000 monthly for player, staff, and content creator salaries, alongside merchandise inventory, according to the documentation. The organization boasts three esports teams in Valorant, Halo, and Apex Legends, as well as four content creators – Tarik ‘tarik’ Celik, Daphne ’39daph’ Wai, Brandon ‘Aceu’ Winn, and Jared ‘Zombs’ Gitlin.
Notably, the memo divulges the annual salary of each executive within the organization, with all four receiving more than $200,000. CEO Rob Moore commands a $360,000 annual salary, as per the memo.
In conjunction with crowdfunding, Sentinels has introduced additional measures to engage fans. The establishment of Sen Society on May 17 offers fans an exclusive subscription service granting access to players, content, and merchandise.
Rob Moore, the organization's CEO, discussed Sentinels' history and its crowdfunding venture in an interview with George Geddes, a figure involved in public relations for the company. Moore disclosed that Sentinels has invested roughly $25 million over its five-year operational span.
The disclosure of Sentinels' potential financial challenges surfaced via Hunter Grooms on social media, prompting reactions from the esports community. Esports reporter Jacob Wolf noted, "Even if they get the funds, they could go under."
As of now, Sentinels has yet to respond to the discussions on its financial future. The organization's StartEngine page indicates that it has raised over $69,000 through the campaign, with the intention of utilizing the funds to support operations and expansion into new business realms.
