Kinguin Restructures and Drops Major Esports Sponsorships
Kinguin, a well-known brand in the esports industry, has recently made significant changes to its sponsorship strategy. The company, which has been sponsoring esports teams and personalities since 2014, has undergone a restructuring process that includes a change in CEOs and a shift in focus to profitability.
Two major organizations, Team SoloMid and Fnatic, were among the first to quietly drop their Kinguin sponsorships without any official statement. This decision has left the Counter-Strike community wondering what led to this sudden change.
According to sources within the organization, Adam Gouda has replaced founder Viktor Wanli as the new CEO. Additionally, Giovanni Varriale has been moved from his position as the head of esports, with Adam Davis taking his place. Davis, who joined the company in June as the business relations manager, will now be managing current partnerships. However, Kinguin will not be pursuing any new sponsorships until at least September, when they plan to review their sponsorship status.
The company’s focus has shifted to making a profit, which has led to a change in their approach to sponsorships. Expensive endorsements with little return are no longer viable for Kinguin, and they aim to redirect their resources to more profitable opportunities.
These changes have also influenced the decision of American organization Nihilum to drop its Counter-Strike team. The Kinguin sponsorship had been crucial in providing financial support to the team, allowing them to recruit top players like Spencer “Hiko” Martin. With Kinguin scaling back on sponsorships, Nihilum found it difficult to sustain the team.
Other teams like Copenhagen Wolves have also reportedly experienced the withdrawal of sponsorship from Kinguin. It is expected that more organizations will face a similar fate, with the exception of Kinguin’s own team.
There is uncertainty surrounding the future of Kinguin’s Counter-Strike team as well. It is likely that the team will be sold after the ESL One Cologne major this month. Talks have already begun with organizations such as Origen, Gamers2, and Winterfox. Gamers2 is currently the favored bidder in the ongoing bidding war.
Despite our attempts to reach out to a Kinguin representative, we did not receive a response by the time of publication.
Image via Valve/Remix by Jacob Wolf