The David Beckham-backed Guild ESports organization has incurred a major financial loss, as per their most recent financial report.
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As reported by DotESports, Guild has reported a net loss before tax applications amounting to $6 million. According to them, this number is "reflecting investment in teams and operational staff, corporate infrastructure, Guild Academy, and content creation." But aside from the loss, Guild also revealed a total revenue of $1.3 million and a gross profit of $860,000 during a six-month period that ended on March 31st of this year.
Despite the loss, David Beckham's eSports venture did report a massive 195% revenue increase from the first half of 2021. Guild earned roughly $1.3 million during the first half of 2022, compared to last year's revenue of around $450,000. This, according to the company report posted on LSE.co.uk, reflected "strong growth in sponsorship income."
One of the sponsorship deals they're likely talking about is the one they signed with the cryptocurrency exchange Bitstamp, which was officially valued at £4.5 million (roughly $5.4 million at the time of this writing. The deal, according to SportsProMedia, is good for three years and was signed back in January of this year.
The loss also follows Guild's recent downsizing of its staff, where 15 members have been cut from the organization since March 31st. According to them, the layoffs were caused by "growing economic uncertainty and challenging capital market conditions." Stripping out the corpo-speak, Guild ESports laid off the staff members because they fear like they wouldn't be able to compensate them regularly for the foreseeable future.
Guild prides itself as a company "designed for budding ESports stars," which the organization grooms from as young as age 11 and up. As per the Guild ESports website, their training is "closely modeled on proven sports academy systems" that were started by leading UK football clubs, among others.
Young players with immense potential in competitive gaming can sign up for the company's Guild Academy, where they would be given professional-level training in order to compete with the world's best.
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Guild ESports And David Beckham
Like a lot of great former athletes before him, David Beckham expressed interest in the multi-billion-dollar ESports industry and looked for a way to get his cut of the pie. This led him to invest in Guild, where he assumed the position of co-owner to oversee the organization's plans of fielding teams in games like Fortnite, Rocket League, and FIFA, as reported by SportTechie.
However, Guild actually signed a prior $19 million deal with the star footballer even before he invested in the company himself. According to a report by Forbes, Beckham will be paid the amount until 2025 via a partnership with his own Footwork Productions. Footwork is the company to deal with for anybody who wants to license Beckham's name and image.
The former Machester United superstar joined other retired athletes like Michael Jordan, Shaquille O'Neal, and fellow football legend Ronaldinho in owning ESports teams (via GamblingSites).
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