Unfortunately, the announcements and the news on HLTV are true.
If the situation does not change within 3 months, our beloved company will go bankrupt, and the price pools will remain unpaid.
So, let me be completely honest and tell you the full story:
We started off as a company crowdfunded by my gamer friends with the Idea to provide tourism services for gamers as we felt these services could be useful.
Somewhere along the road we created the Idea of a festival combining music, fun, and good beer with gaming as a proof of concept.
Since we did not have the starting 450k € and were declined by Kickstarter, we made a plan how to fund a festival from ticket sales.
The logic behind it was clear: if people want the event to happen, it will happen.
We announced the idea in November 2014, and opened ticket sales in January 2015, followed by a detailed explanation of our plan on our FB page, the joindota forum (in January 2015) and the reddit forum (at the end of March 2015).
I also put my name behind the idea, putting it on every thread.
So there were no secrets from the beginning.
This kind of approach created skepticism since nobody was sure we will actually make it on time, and sell enough of tickets to fund the festival.
Since the festival included a lot of content, the ticket prices were too high for an average local person (around 40eur per day). We needed around 2000 people per day to cover the expenses. This calculation did not include any additional funds from sponsors or the investors.
As time was passing buy, and the qualifier and the festival dates were getting closer, tickets sales still didn’t lift up, and we realized that some additional funds will be necessary to push the project further.
We invested 30k € (friends and family) to push it through the qualifier in hope that the word will be spread, and that a good qualifier event will lift up ticket sales.
We also involved a lot of people to help us find additional resources and sponsors for the festival.
Unfortunately, an honest approach was suicidal and made us lose already made deals that could bring us up to 200k € in sponsor resources.
After we already closed the deal, I felt obligated to inform partners about potential risks involved, and how the project was actually funded.
After a few months, the sponsors decided it was too risky for them to get involved leaving us with even less time and options (this is understandable because nobody could predict how many funds I can raise, or how many tickets will we sell).
Since I am the guy who never quits (I stay in the game after all four teammates disconnect), I tried to find other options to finish the project.
I gathered a group of investors and marketing guys together with some friends and family to invest and search for additional sponsors. It was a team of great people, but unfortunately there was not much time left.
At the beginning of August, we had to decide if we should go in this venture or not. After a talk with my consultants (people of great experience and knowledge), we decided that was worth to take a risk since we had only one shot, and the timing was very good.
The decision was partially based on the improved ticket sales in July.
So we started by investing heavily from our own resources to push things forward until ticket sales would take over.
We started paying our subcontractors to do the necessary preparations for the event of this magnitude.
It was a race with time in which we had to fund 300k € before September in order to finance everything from building the stages to covering the venue and the airplane tickets.
The fundraising was going ok, but the time was short, so we focused on necessary things first by cutting off the unnecessary. Unfortunately, by mid of August we had to cut off music stages lowering our minimum cost of the festival close to 200k € before September. The ticket price was consequently dropped to 25€ per day (but kind of too late).
Unfortunately, some of the planned investments were cancelled, and we raised only 140k € + 15k € of sponsorship deals by the beginning of September.
Since only 100 people showed up on the festival, our last hope died and we stayed short for a Venue payment and airplane tickets for the Dota2 teams.
The combination of PC problems, the shortage of resources, the poor choice of partners, the internet trolls, and the sensationalism hungry e-sport journalists badly damaged our reputation, as a Company and my personal one.
Since we cut down smaller tournaments and the Dota2 tournament, the amount to be paid after the event was significantly lower than planed (around 90k € instead of 150k €) bringing it all together to a 150k € that has to be covered.
So the situation was as followed:
• - 150k €
• Bad Company and personal reputation.
• Around 60% of customers demanded refunds.
• Sponsorship funds were canceled after a media disaster on the event.
• Our future investors backed off.
• All of our private resources were used.
Who would like to invest into a broke company without reputation?
And give me the investment? To the guy framed to be Hitler/Satan of the gaming industry.
There is not much I can do as a person, or as a company to change that at this point.
There is a reason why people entrusted me with so much resources. That reasons were my honesty and high moral values.
But the destruction of the company will leave me personally in moral debt of 300k € so It may take some time until I gather that amount of funds (5 years is my best estimation if all goes as planned).
I will do what I can to do that in the future.
My only option, and the only thing left to do is to continue to be honest and ask the community to help us with donations, so we can at least pay the price pools for the players before the end.
Players behaved professionally and they deserve to get paid.
So if you really wish to see the episode two of your favourite team burning in gaming hell, I suggest you help me raise funds to finance debts and start all over again.
This time I will certainly not go forward without the support of the community. Do your best as you did your worst before, and we can create a new chapter in this book of gaming history, and I can redeem my reputation.
Thank you all, I would do it all over again, because roller-coaster is for pussies.
High Priest of The Gaming Resorts
Paypal account for donations is firstname.lastname@example.org