For those that are newer to the esports scene as a whole, there are likely few disadvantages to be found in various tournament organizers (colloquially known as TOs) hosting a consistent myriad of competitions, inviting new teams along with veterans to compete for cash prizes at a moments notice.
The teams dive into these tournaments solely for the cash prizes: it helps teams keep literal bread on the table (a matter of eternal importance) while allowing organizations to similarly test rosters and strategies.
TOs, in exchange, get to flex their muscles and make some waves as a relevant organization within a select scene, and they can then turn around and offer ad space to various companies to help stymie burgeoning costs of paying casters and winners whatever agreed-upon terms.
It’s a vital aspect of many esports, a small self-contained ecosystem where everyone comes out on top.
Unfortunately, it doesn’t always work out too well; TOs can overspend on casters and general production, and it can then result in teams not being paid for winning; literally, the only reason that the teams will cooperate and offer a show within the competition.
Missing $10k Payouts From Pulse
— Gabe Ren (@gaberen) October 16, 2020
If you’re curious about what this all looks like in reality, then Pulse Arena has just been called out by Mamba Mode Gaming for failure to pay winnings from the Valorant tournament the was hosted from September 10 to September 13.
don't think they can afford the price to run one 😂
— Jasper K. (@sfX_x1) October 16, 2020
It’s worth noting that this isn’t as rare as anyone would like within the esport scene, especially when we’re looking at smaller TOs; yet public pressure from fans can help encourage organizations to pay the agreed-upon sums, as no TO necessarily wants to be shunned by communities and teams.
Further, the announcement that Complexity, Mamba Mode, and Beastcoast all allegedly not being paid yet (over a month after the tournament ended) can be a proverbial canary in the mines for other teams, advising them to be careful when dealing with the TO in the future.
Just in case you missed the action live: 👀
— Mamba Mode Gaming (@MambaModeGaming) September 28, 2020
We have reached out to Pulse Esports Arena requesting a statement regarding the allegations, and they have not yet responded to our attempts to communicate. We will update this article with their full statement in the event that they respond.
Hopefully, this becomes a bit clearer within the week, with all parties still awaiting payment for their performance managing to somehow offer clarity to the situation that appears to be ongoing; there appears to be little recourse aside from the affected teams hiring legal council and dragging everything into court.