“Everyone is going bankrupt” – investor says teams have deceived sponsors so often that disaster is approaching

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Esports looked like the future of gaming for many years, but the hype seems to be cooling off a lot, even with League of Legends. A Twitch streamer who has invested a lot of money in the US LoL esports explains the problem. Disguised Toast says he’ll be happy if he gets at least $100,000 back out of $1 million.

Who’s speaking?

  • The American Jeremy Wang (31) became known as “Disguised Toast”: He appeared with a kind of “toast with a mustache” as a mask and became a successful Twitch streamer.
  • Wang made a name for himself as a strategy expert in Hearthstone. In recent years he has also been active as an investor in e-sports, including in Valorant and League of Legends. He is known for acting cautiously and spending as little money as possible on the teams, while trying to use his reach as an influencer to make his teams relevant and interesting for advertisers.
  • However, since he has invested in e-sports, he has repeatedly explained how much money he has already lost with e-sports and how sad the situation is.

    • A German equivalent of Disguised Toast is Handofblood, who apparently enjoys his LoL team much more.

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    Influencer invests $1 million in LoL esports

    This is what he says: Disguised Toast explained the dreary situation of his team in LoL in a YouTube video in the summer of 2023 (via YouTube). He says he invested in Lol because he has loved the game for 10 years and wanted to sign some players during the players’ strike to keep their dream alive.

    Riot Games dissolved the academy system in the USA in 2023, in which teams had to sign young players and employ them in their own teams. This led to player protests and even a strike.

    But now he has invested twice as much as he wanted, about a million US dollars, and there is simply nothing coming back.

    He explains that his accountant sent him a message:

    He sent me an Excel spreadsheet with a bunch of red numbers. And in the income section, some cells had no numbers. I asked him why he blacked out the numbers and he told me he didn’t. There is simply nothing there. He couldn’t put anything there.

    What is the problem? Disguised Toast says all organizations in North America are bankrupt or on the way to being bankrupt. By that he simply means everyone.

    Some clubs may say everything is fine, but believe me, everyone loses a lot of money and a lot of people get fired.

    Sponsors are tired of losing money in e-sports

    Why is there no money? The influencer explains that the obvious idea was to seek sponsors, but after 10 years of esports team sponsors being lied to, companies are fed up with losing money.

    He himself contacted a company that sells a well-known energy drink and is invested in e-sports.

    But even they just wanted to get out of e-sports. They said they would only continue to sponsor the current team because they have a contract with them, but as soon as that expires they will pull out of e-sports:

    Brands fear esports because they have invested millions and millions of dollars without receiving any significant return for their investment.

    In any case, he would be happy if he got even $100,000 back from his $1,000,000 investment.

    This is what lies behind it: What Disguised Toast says in the video corresponds to current statements from experts: The LoL league in the USA is in a deep crisis. Teams are expected to cut costs mercilessly and focus on player salaries.

    Here in Germany the regional LoL league seems to be doing at least a little better. The LoL Prime League has some high-profile sponsors.

    But LoL teams in Germany have also gone bankrupt, with the clear statement that such an e-sports team is a black hole that devours money.

    LoL: Berlin team is forced to relegate from the Prime League – boss speaks of a “black hole” that swallowed more than €100,000

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