E-sports team RNG may go bankrupt at any time! CEO: Issuing NFT to save financial crisis

This site (120btC.coM): The RNG team club in China’s “League of Legends Professional League (LPL)” division, which won the mid-season invitational tournament of “League of Legends” in 2018 (MSI) champion, one of the most well-known e-sports clubs in China.

However, the club’s CEO Li Jieming said in a recent interview that their financial situation is actually very serious, and they can even “disband immediately and declare bankruptcy.” As a solution to continue operations, Li Jieming expressed his hope to gain short-term revenue by issuing NFT and operating the fan economy.

RNG may go bankrupt at any time

In the interview, Li Jieming said that the RNG club’s losses reached tens of millions, various defaults occurred, and millions of dollars were spent every month for operations, most of which Used to pay player fees. Although the club worked hard to bring in high-cost players to strive for good results, the revenue still fell far short of the expenditure. Coupled with the failure to successfully enter the playoffs this time, it resulted in huge debts.

At the same time, this has also resulted in extremely low revenue from sponsors' event sharing, and the club's ability to resist risks has deteriorated, resulting in continued negative returns. Contractual disputes are frequent, mostly due to a lack of funds and a vicious cycle of past problems.

In the short term, it is planned to raise funds to repay debts through the issuance of NFT

Facing financial difficulties, Li Jieming proposed a three-stage rescue strategy:

1. Short-term goal: establish an e-commerce platform The first "public team" in the history of a sports club, it attracts fans to buy by issuing cards or NFT, thereby recovering funds in the short term. Li Jieming said that holders of these products will not only obtain collection value, but also obtain certain decision-making and participation rights, allowing fans to participate in the operation of the club.

He emphasized that he would protect the rights and interests of fans, avoid cutting leeks, and design a legal and compliant mechanism to continue operating. Li Jieming expects that the money raised from short-term goals can pay off part of the debt.

2. Mid-term goal: sell niche games, independent games and other products through live broadcast, similar to the "Oriental Selection" model of live broadcast "goods", to bring stable income to the club. This strategy is not expected to be profitable within half a year and will be used to build a live broadcast platform and increase audience participation.

Li Jieming emphasized that the profit method of this business is sharing, not advertising revenue.

3. Long-term goals: Promote public welfare training projects, establish e-sports training bases in poor areas, train local youth to become e-sports players, and provide cultural courses and education. The investment period is expected to be three years.

In addition, RNG is also exploring ways to increase exposure and develop new sources of income by producing short dramas to cope with the current financial challenges. The common goal of these strategies is to reduce debt pressure and gradually restore the club's financial health.

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