KODE5 prizes unpaid since 2008

Nix0n
February 7th, 2012 16:06

Four organizations have released a statement aimed at KODE5, in which they state prize money dating back to 2008 has not been paid out. 

Since December 2010 when CNB-Gaming won the KODE5 event in Peru, no information has been released from the organizers and the project seems more dead than alive.

Today, fnatic, mTw, SK Gaming and Frag eXecutors released a statement touching on a returning problem in eSports – unpaid prize money – in which it is estimated that KODE5 has debt to teams that exceeds $75,000 and probably even more, but lets touch back on that later.

The statement reflects on the 2008 and 2009 finals, both of which had a $40,000 prize purse split between the top three finishers.

"KODE5 has shown no intentions to fulfil their commitments and reach an agreeable solution, and after learning that last years winners are in the same position, we feel it is necessary to inform the community."

"In the few replies our management have received from KODE5, the only common theme is that we keep being asking for more time in order to sign new sponsors to clear any back dated money owed." – Reads the statement.

In 2008 mTw won KODE5, as the event made their return, hosting the finals in Russia’s capital Moscow. With the win the Danes bagged $25,000 and $10,000 went to the Swedish team fnatic, while $5,000 would go to SK Gaming, who took third.

Next year fnatic won the 2009 edition of KODE5. Before the event mTw had complained to KODE5 regarding the unpaid prizes from the previous year and the day before the 2009 finals a written agreement between KODE5 and mTw was settled, in which a payment plan was agreed upon. This was never known to the public, the information was disclosed to HLTV.org prior to the 2009 finals kicked off.

With their victory in 2009 fnatic was obliged to $25,000 and SK Gaming $10,000 for second place. Third place and $5,000 went to the Polish team, at the time under the wings of WICKED.

 
fnatic's $25,000 cheque keeps bouncing  

Both fnatic and SK received their winnings from the 2008 event, while mTw are owed $20,000 of their $25,000 winnings. None of the $40,000 prizes from 2009 have been paid out.

"There is indeed a strong feeling among us of being deceived by KODE5 and a distinct lack of truth and visibility. Our teams invested both time and money to attend their events, but so far we have just ended up disappointed."

"At this stage we sadly realise our chances of seeing the missing prize money is now microscopic. We hope that our efforts are not in vein and those responsible for KODE5 take notice. Let us all learn from this and look forward to a more professional gaming scene, where the winners get what they rightfully deserve." – Reads the statement released by via the fnaticSK and mTw websites.

Leading up to the 2010 finals it might have been an untold story to the public, but organizations, teams, players and people generally involved in eSports knew that prizes had not been paid out for the last two years. If anything, the 2010 event turned out to be a disaster.

In November 2010 the KODE5 organizers announced a $40,000 prize purse for the event, with the same breakdown as the previous years. At that time only five teams had qualified; LatterligLett, x6tence, Wild Ineters, OSLF.dk and Iron Will.

Only Wild Ineters managed to make it to the event. The Spanish license holder broke up and x6tence received no response from the KODE5 organization when they tried to resolve the situation, which mean the team did not fly out and furthermore announced they would not participate in any future KODE5 events.

The Danes from OSLF.dk announced they would not go either, the team won the German qualifier, but the organizers did not pay for the travel and accommodation as promised. The last team to pull out was Iron Will, who didnt make the trip to Peru, as the Russian organizers decided against sending the team. 

In the end only seven teams turned up and more than anything ended up being a Latin American event – Five teams from the host country Peru, CNB-Gaming from Brazil and the Argentinian team Wild Ineters. 

As the event kicked off in Peru's capital Lima, the KODE5 "Revolutionary-at-Arms" Thomas Kuhlenbach and "Revolutionary-in-Command" Lester Lau had in best Oscars fashion sent a video to present the opening ceremony, as they were not in person on-site for the event.


Lau's last attendance at KODE5 2009 

In May 2011 the Latin American teams stressed that prize money still had not been paid out, meanwhile the company responsible for security and the logistics of the event, added they also had outstanding money with the KODE5 company. 

In the statement released by the three teams, it's also mentioned that in 2010 the only sponsor of KODE5 was BitFenix, a Taiwan-based computer hardware and peripherals manufacturer. The teams point out that the people behind KODE5, including Kuhlenbach and Lau, are the same people behind BitFenix.

With $20,000 unpaid from 2008 and $40,000 from 2009 as well as the $40,000 from 2010, the total amount of unpaid prizes owed by KODE5 to the respective winners ends up at a whopping $100,000. HLTV.org understands KODE5 also owes money to organizers of qualifiers, as well as $3,700 to Progamer Consultores S.A.C., the company responsible for the security and the logistics of the 2010 event.

While KODE5 is dead and probably buried for good, BitFenix is still operating and you will most likely be able to find products with their logo in your domestic hardware reseller.

sad story..
2012-02-07 16:07
+1
2012-02-07 16:55
+1 hopefully they get paid in time
2012-02-08 00:17
yeah cause its only been 4 years... i'm sure theyll get right on that.
2012-02-08 10:31
yea cuz i said they will get paid today rite i said HOPEFULLY learn to read b4 posting UmAdBr0?!?!
2012-02-08 21:47
mm guy,u are realy good reader, news was posted 16:06 and u comented 16:07..
2012-02-08 16:31
the title is enough to find out its a sad story =)
2012-02-11 15:03
Very sad Nandulino xD
2012-02-08 22:15
haha sup man :D
2012-02-11 15:03
#2
Sweden BaajN 
FX!
2012-02-07 16:08
#4
India xb0y' 
NOOB ORGANIZERS
2012-02-07 16:09
Guys responsible for this are ruining cs 1.6.
2012-02-07 16:10
Not only 1.6, but they are a disgrace to e-sports as a whole. It is sad this kind of stuff happens, not only in 1.6, but also other games. :(
2012-02-07 17:58
totally agreed.
2012-02-07 19:39
:/
2012-02-07 16:10
lol
2012-02-07 16:11
old news
2012-02-07 16:11
#9
Poland seeez 
sad
2012-02-07 16:11
OMFG... Fuckin'morons!
2012-02-07 16:14
Nice photo of fnatic - their best line-up.
2012-02-07 16:14
#36
 | 
Netherlands liQuidmoTion 
the one with archi and tentpole is pretty damn close! :P
2012-02-07 16:58
"close" .. :P
2012-02-07 17:29
#54
 | 
Netherlands liQuidmoTion 
tentpole was just as good as gux but I have to admit, gtr topped archi :P
2012-02-07 17:31
heh,i was not playing cs in time when tent and archi played in fnatic :( . But i think last line up was little bit more successful :)
2012-02-07 17:37
#136
 | 
Netherlands liQuidmoTion 
I guess, but with tentpole they won quite some international medals aswell :P but yes 2009 was probably the best year in fnatic's (rich) history
2012-02-08 16:02
I always liked tentpole. I was disappointed to see him leave SK a few years back.
2012-02-07 17:50
#135
 | 
Netherlands liQuidmoTion 
same here man :P
2012-02-08 16:01
Archi was the ceh9 of that team. Average player.
2012-02-07 20:11
#134
 | 
Netherlands liQuidmoTion 
well he was the least on that team, but I would say he was a tad better than ceh9. he had more great games, and performed alot more in the fragging/1shotting department :P
2012-02-08 16:01
#39
dsn | 
India sRik 
Dsn <3
2012-02-07 17:05
f0rest and Gtr with bag pack, were they all that time ready to leave fnatic :D
2012-02-07 17:17
#55
 | 
Netherlands liQuidmoTion 
nah they were packing heat ;D
2012-02-07 17:31
drama
2012-02-07 16:15
bitches
2012-02-07 16:17
lol tards, like digifest
2012-02-07 16:17
and wgf also :D
2012-02-07 17:07
I remember when LUq said in interview from all event generally are not paid them ~$120k (2x EWSC etc)
2012-02-07 16:20
Screw you :\
2012-02-07 16:20
its cs 1.6...
2012-02-07 16:22
:(
2012-02-07 16:22
such ugly:)))
2012-02-07 16:22
#20
 | 
Georgia Fatal Fighter 
fuuuuuuuu
2012-02-07 16:24
GOOD shit go and collect it :d
2012-02-07 16:24
kode5 pay cnb
2012-02-07 16:25
#23
Ukraine tonj 
ahahhaha lol
2012-02-07 16:27
There should be a precised contract/act where your team checks-in and pays to join the tournament. A point from there should sound like: The organisation itself, KODE5 is obligated to pay the full prise money amount in a year. Otherwise, you MUST sue the organisation. These boycotts look like the rallies in Moscow now. But here we have a long text without any threat for the organisation. They are not afraid of anything. That's one of the reasons why many pro players left the scene. Because of scumbag organizers. Shame.
2012-02-07 16:34
there pretty much is this agreement. It's at the point where they can sue, but the people who ran Kode5 are not contactable or unwilling to show themselves.
2012-02-07 16:35
So, if I rob a bank and I don't contact with you I don't exist? The team must call the police or do whatever to find the organizers. They went against the system, they broke the rules, so why we shouldn't punish them?
2012-02-07 16:42
+1
2012-02-07 18:48
The police aren't going to involve themselves in a civil matter (a contract dispute). I think the biggest obstacle would be the legal process itself. It can be both very expensive and time consuming launching a court case, chasing up a defendant, getting them to appear in court and then fighting any appeals from the defendants should the gaming organisations win. Even once that's all over, the defendants aren't guaranteed to pay a penny and then the plaintiffs are left to start the legal process over again. Sometimes it's just cheaper and less hassle to cut their losses and instead warn others against doing business with these tournament organisers in future.
2012-02-07 22:24
Yeah, I was kinda wrong about the police. I meant like to find any way to reach the KODE5 orgs. Isn't it cheaper to find an awesome lawyer, and to press out all the money from kode5? Yes, I know it's a big brainfuck to do all this shit, but, you won 40,000$, why shouldn't you do it?
2012-02-07 23:28
Sadly it's usually the lawyers themselves who are the largest expense for people wanting to launch legal action. The gaming clans could ask the courts to make the defendants pay the plaintiff's legal fees, but that doesn't always work out and the gaming orgas could be left with a legal bill larger than the tournament money they're chasing. In the end, it all depends on what the money men at fnatic, SK and mTw decide. They could still launch legal action, but if that's what they do decide, I can imagine the case dragging on for over a year at least.
2012-02-07 23:42
You are right. Trying to search the truth is a big risk for them.
2012-02-08 00:30
also, which country do you do these proceedings in? Usually it's done in the place where the act was committed, which is a few different countries. Also, the plaintiffs are from various countries. So many things to consider and i'm sure it will be costly.
2012-02-08 05:00
I still see Thomas coming online on MSN every day with headlines about how good a salesperson he is! =)
2012-02-08 02:15
Call the POLICE!
2012-02-07 16:33
1.6 police!
2012-02-07 16:40
call pasha, he will deliver a punch on the face of organizers all the problems will be solved :D
2012-02-07 17:15
#85
Italy baus 
yea!
2012-02-07 19:54
#26
Malta juga 
lol hussled
2012-02-07 16:34
Seriously, all tournaments in future have to be made with a contract between teams and organisators. Otherwise this will happen again and again I suppose.
2012-02-07 16:39
+1.
2012-02-07 16:55
+1
2012-02-07 18:48
don't worry, valve is going to support cs:go :)
2012-02-07 22:14
sad :(
2012-02-07 16:42
jeezus just get the money to the tournaments and pay it immediatly after their victory otherwise bullshit like this will always happen I don't understand why they organize tournaments without having money for it, fucking morons
2012-02-07 16:52
fucking +1
2012-02-07 16:56
Better question is, why teams waste time to go there years after the first event didnt even pay out :D
2012-02-07 17:11
+1. ok kode5 sucks but teams should see that this will happen.
2012-02-07 17:17
Prize money paid out instantly after the final, just like Arbalet and ESEA, is the way it should be.
2012-02-07 17:03
well its not always so easy. since everything has to pass a legal actions. i think some ESL ppl could tell us more about it.
2012-02-07 17:13
I wont defend KODE 5, i think there is no excuse to not pay prizes, but, dont use Arbalet as an example, he funded his own LANs, he is rich, he has no problem to pay after the event..
2012-02-07 18:49
#75
Other ohai 
esea is still a good example. they're a gaming org and don't host lans and claim prizes will be handed out when they don't have that money already if the organizers can't pay out the prize at the time of the event, then they shouldn't say that will be the prize. in other words, they should have the prize money by the time of the event and not just be planning to acquire that much at some arbitrary time in the future (that may never come, as we see here)
2012-02-07 19:01
I never mentioned ESEA
2012-02-10 05:48
no shit dude. the guy you replied to did
2012-02-10 06:43
Do you have a brain ?
2012-02-11 05:56
ask that back at yourself look at the convo: --l[]c[] cites arbalet and esea to make his point --you say arbalet doesn't show the point --i say esea still shows his point (--you idiotically dont understand why esea is brought up)
2012-02-11 06:34
Yes, because i know ESEA proves the point, and i was just pointing out Arbalet doesnt, so, there is no reason for you to say anything about ESEA when i didnt mention them, which clearly means i know they work as an expamle...
2012-02-12 02:41
howz cs in mexico?
2012-02-07 21:32
I dont know, and i couldnt care less, but i can tell you something, your country isnt much better...
2012-02-10 05:48
you wouldn't believe me but I was politely asking as I was curious of mexicos' cs scene no offence intended
2012-02-10 18:08
Well, i thought you meant it in a bad way, but anyways, the scene is non existent here i think, could be wrong though...
2012-02-11 05:56
If ESEA can, then surely others can too.
2012-02-07 22:42
ESEA is a good example, i was referring to Arbalet..
2012-02-10 05:48
sad for those teams :S
2012-02-07 17:05
sue the n00bs
2012-02-07 17:09
sad , I gradually die cs :s
2012-02-07 17:11
creating a campaign against bitfenix would be the best imo
2012-02-07 17:12
kode5 2010 is not paid for CNB-Gaming, Brazil. =D
2012-02-07 17:18
sad :/
2012-02-07 17:24
#51
 | 
Ukraine gungrave 
ESL prizes unpaid since??
2012-02-07 17:30
ESL have paid the money every time , there was just a big delay between 2010-2011 for team Navi ...but navi are getting paid by esl on a regular basis at this point, ESL has paid over 10.000.000 dollars in prizemoney .......i think ESL deserves some time ...
2012-02-07 19:21
ESL still did not paid money Na'vi. Thats true.
2012-02-08 07:22
did you spoke with the navi guys after in the end of 2011?
2012-02-09 10:13
#53
KRIMZ | 
Slovakia EvErisT 
fuck kode5
2012-02-07 17:30
New rule: if the organizers hasn't payed out last years pricemoney when they announce a new event, DONT GO.
2012-02-07 17:31
#76
Other ohai 
better rule: if the organizers won't have the prize money at the time of the event, don't go. if they can't get enough to pay out the prizes at the time of the event, they don't understand their business and shouldn't be trusted.
2012-02-07 19:03
How are the organizers supposed to prove that they have the money? If they say they will pay out at the event its not exactly to be trusted.
2012-02-07 19:09
#81
Other ohai 
escrow
2012-02-07 19:24
Didn't think about that. *feels stupid*
2012-02-07 20:20
Like ESWC, bank guarantee - very simple to obtain if you actually have the money!
2012-02-08 02:17
#57
 | 
Other Mortal_Wombat 
sooooooo,.............. what ya saiyng is.. cs is dead since 2008?
2012-02-07 17:36
idiots.
2012-02-07 17:46
hope they will pay .
2012-02-07 17:49
What about ESWC? As far as I know polish team still don't get money from 2007 and 2008.
2012-02-07 18:10
+1
2012-02-07 18:20
the present ESWC organization can't be blamed since it was a different leadership , the 2010 prizes have been paid in full .... they need to find the guys who ran the 2007/2008 events and sue them , not eswc.
2012-02-07 19:27
I feel really sorry for Golden Five since they had prize problems several times, for example ESWC 2007($40.000) and ESWC 2008($40.000).
2012-02-07 18:16
Gosh so much money :/
2012-02-07 18:50
No wonder, they keep coming year after year..
2012-02-07 18:19
#67
Russia flOy 
<3 fnatic 2OO9
2012-02-07 18:34
#70
Brazil raj 
cs 1.6 parody "the terrorists wins"
2012-02-07 18:48
hahaha
2012-02-07 19:10
#73
Romania davs 
epic news...
2012-02-07 18:56
#79
cyx | 
Bangladesh Stoffi 
Pathetic, you very seldom hear about this in other sports, just shows how unprofessionel e-sports still is - sadly.
2012-02-07 19:18
sad
2012-02-07 19:34
I remember reading about Kode5 way back in 2008 and concluding that they were dodgy - based solely on the stupid revolutionary imagery. Wherever you look, there seems to be a strong negative correlation between aesthetic sensibility and fraudulent behaviour. The really interesting thing, though, is that most people don't seem to notice and so keep falling prey to this sort of scam. It's the same as any advertisement with randomly capitalised or underlined words - it's patently obvious they're selling bullshit, but people still fall for it.
2012-02-07 20:06
credit crunch what you expect
2012-02-07 20:34
The problem is they knew this when they started running each of the events, they should have some sort of plan in place to prevent this from happening after at least the first time it happened if it was due to sponsors not paying up.
2012-02-09 00:35
#91
Costa Rica Mek0 
IS THE SAME case of CPL poor organization
2012-02-07 20:47
go to bitfenix.com and send them a message... At least we can bother them, i just did.
2012-02-07 20:55
true but sad story,LOL
2012-02-07 20:58
YOU MUST JUDGE THIS ORGANIZERS BY THE JUDGE OF THE NAVI J.A.G. WITH COMMANDEUR RABB TO BE PUNISH TO GET IN CASE IN THE CASTLE
2012-02-07 21:14
#95
 | 
Norway billson 
Disappointing.
2012-02-07 21:15
lol
2012-02-07 21:50
pro-gaming simply has 1 professional and trusted organization running, its called Dreamhack A/S :)
2012-02-07 22:34
DreamHack AB actually, but minor detail ;)
2012-02-07 22:42
Blood from Peru also wants their money. Remember not to buy anything from BitFenix.
2012-02-07 23:22
That sucks!
2012-02-07 23:52
can it not be taken to court?
2012-02-08 00:49
#113
Romania 511 
Unfortunately no... they can sue them only for the registration fee...
2012-02-08 02:04
Sure, costs a ton and will probably yield in KODE5 being declared bankrupt and not paying anything in the end because there are no assets and they probably have a protected company form like ltd.
2012-02-08 02:19
I knew there were many complains about KODE5 but the event was really cool
2012-02-08 02:17
#118
coldzera | 
Brazil mrLL 
sad )):
2012-02-08 02:38
Bad Here you can see a pair of articles in newspapper of Perú on the finals of KODE5 2010 are in Spanish bit.ly/Kode5Set bit.ly/Kode5May This was the greeting of Lester Lau in the finals of KODE5 2010 in Perú. bit.ly/Kode5Lester
2012-02-08 02:56
I MISS FNATIC '09
2012-02-08 04:03
what a shame
2012-02-08 04:07
BITFENIX - that guy has 2 ppl nicks in one, what a lucky guy! HAHAHA
2012-02-08 04:22
call arbalet i bet he has own mafia for cheap use
2012-02-08 06:16
dont joke with the russian mafia :D
2012-02-08 21:53
look at the pictures and look fnatic which team was the strongest ...
2012-02-08 07:25
#128
Taiwan ih8 
pwned
2012-02-08 08:24
Why not take legal action against these KNOWN organizers?
2012-02-08 08:35
spain rulez....not
2012-02-08 09:46
I think the major companies sponsoring the scene could chip in and just donate at least some of the money the players have been fucked over from and gain huge support from millions of fans.
2012-02-08 13:57
haha, smart move to not pay for crapy games tournament.
2012-02-08 14:16
bravo KODE5
2012-02-08 17:35
LOL its better to get 2. and 3. place for fnatic and SK in 2008 than winning :P
2012-02-08 19:22
bra
2012-02-08 19:30
This is ACTA!
2012-02-08 20:24
sad
2012-02-08 21:23
kode5 had so many huge sponsors what a shame
2012-02-08 21:54
Wild Ineters 2010 <3
2012-02-08 22:32
pure corruption
2012-02-08 23:00
What about WGF? :D
2012-02-09 03:12
dishonest, did they have the money in the first place?
2012-02-09 11:21
#157
 | 
Ukraine minemax 
Epic fail.
2012-02-10 14:14
Fuck that's horrible. Guys are investing a lot of time to practise - they could be studying or working instead and playing CS just for fun. When they get nothing in return - that's fucking unfair. I think that lets say 20 best teams should set up an organization that will negotiate with tournament orgas - they will be obliged to pay the money to the players orga before the tournament starts - otherwise none of teams will appear there.
2012-02-11 00:15
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