FNATIC are continuing to bleed economically
In October of 2023, Xiao Mian Yang Esports released a report on FNATIC’ s finances. They found that the European organization is collapsing rapidly with a loss of two (2) to (3) million euros each year and the remaining funds from October were only enough to maintain two (2) months of operations. Fnatic’s financial situation coincided with the information released by Xiao Mian Yang Esport as the organization chose to sell their star players in the critical moment in order to maintain operation of the company. This led the team to selling their LEC support Trymbi to Team Heretics and star AD carry player Rekkles to the T1 Esports Academy.
According to their released report, player salaries have become extremely expensives saying:
“The cost of running this e-sports giant is 28 million euros, and the salary alone is more than 11 million euros. This represents an increase of more than $1 million in losses compared to their last closure.”
This is likely the reason as to why the team decided to move forward without their star duelist “Derke” in favor of polish ascension winner “kaajak” alongside the organization’s focus on their LEC team in preperation of Worlds 2024 and their expensive roster of maintaining jungler “Razork” and mid laner “Humanoid” (whose salaries combined are in the millions) and their acquisition of Korean support player “Jun” among other internal reasons.
However, FNATIC’s operation costs continue to look helpless as they are also reported to have a slow down in economic flow in the coming new year. The Xiao Mian Yang Esports report also reported:
“FNATIC was growing, generating new revenue, but was unable to achieve the financial balance it needed. The auditors also explained that FNATIC announced it had prepared a continuity plan for its operations, with financial cash flow forecasts continuing until December 31, 2024.”
This news comes to no surprise to insiders of FNATIC as shown by trusted LOL Esports creator Thorin explained back in September.
FNATIC are continuing to lose millions of euros each year. With their prioritization of their LEC team and the necessity to maintain operations despite the heavy price tag of player salaries, it is unknown if the organization will continue their VALORANT division come the end of 2025.
