Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Guild Esports, backed by David Beckham, faces financial crisis after burning through £26.6M

by August 2, 2024
August 2, 2024
Guild Esports, backed by David Beckham, faces financial crisis after burning through £26.6M

Guild Esports, the David Beckham-backed gaming group, is teetering on the brink of collapse less than four years after its high-profile listing on the London Stock Exchange.

The company, which competes in video game tournaments for titles like Fortnite and Tekken, has warned shareholders of its dire financial straits, with only £25,000 left in its accounts.

On Thursday, Guild’s share price plummeted to a record low of ¼p, slashing the company’s market value to a mere £1.3 million. Since its initial public offering (IPO) in October 2020, Guild’s shares have depreciated by 98%, a stark contrast to its launch price of 8p, which had initially valued the company at around £40 million.

Guild’s foray into the stock market was initially seen as a litmus test for the City’s interest in the burgeoning esports sector, where professional gamers compete for substantial prize money. However, the company has struggled to win over investors, incurring losses of £26.6 million over three and a half years while generating only £14 million in revenue.

The company’s management has been reassessing its strategic direction and published their preliminary findings this week. With £1.4 million in outstanding bills due by the end of September, Guild’s financial outlook remains precarious despite an anticipated income of £1.5 million in the coming months.

In a recent stock exchange announcement, Guild stated: “The company is actively exploring a range of options to meet its short-term liabilities. These include securing additional funding, negotiating improved payment terms with creditors, and further cost reduction initiatives.”

Furthermore, the board is contemplating broader strategic shifts, which may involve realising assets for cash or potentially merging with a larger entity.

David Beckham, who was an early investor and acquired shares at a discounted rate prior to Guild’s flotation, holds a stake of just over 3%. Despite having invested approximately £250,000, the value of his shares has dwindled to less than £50,000. Nevertheless, Beckham has profited significantly from an influencer agreement with Guild, earning around £7.625 million so far from social media promotions and public appearances.

Originally, Beckham was guaranteed earnings of £15.25 million over five years from this agreement. However, two years ago, the terms were renegotiated so that Footwork Productions, Beckham’s image rights company, now takes a 20% cut of any sponsorship revenue and merchandise sales instead.

Read more:
Guild Esports, backed by David Beckham, faces financial crisis after burning through £26.6M

0
FacebookTwitterGoogle +Pinterest
previous post
Intel to cut 15,000 jobs in bid to catch up in AI chip race
next post
Getting to Know You: Rhea Karo, CEO of Social Amour

You may also like

Forecasting vs Budgeting: How Financial Models Differ in...

October 11, 2024

Tories Explore Abolishing Non-Dom Tax Status

February 29, 2024

Reeves reassures on trade as Trump tariffs threaten...

November 7, 2024

Jeremy Hunt faces calls for budget giveaways as...

February 21, 2023

Honda and Nissan explore merger amid EV market...

December 18, 2024

Treasury’s bank referral scheme falls flat, securing loans...

November 4, 2024

Debunking Myths and Discovering the Benefits of UK...

June 27, 2023

How good are private jets for business?

February 2, 2023

Exclusive Interview with Larry Weltman: Adaptability, Innovation, and...

December 2, 2024

UK economy shows signs of recovery in January

March 13, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Rescissions: A Small but Welcome Step Toward Spending Discipline

      June 5, 2025
    • DAVID MARCUS: Why Navy ships should not be named for gay rights icons

      June 5, 2025
    • GREGG JARRETT: Biden, the ‘marionette president; and the case of the runaway autopen

      June 5, 2025
    • Trump Practically Bans Travel and Immigration from 12 Countries with Flimsy Security Justifications

      June 5, 2025
    • ‘He’s not a big factor’: Trump’s Senate allies dismiss Elon Musk’s calls to ‘kill the bill’

      June 5, 2025
    • Fears grow that Tata Steel could be excluded from Starmer-Trump trade deal

      June 5, 2025

    Categories

    • Business (8,147)
    • Investing (2,008)
    • Politics (15,523)
    • Stocks (3,127)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved