Esports Scotland faces scrutiny over unpaid debts, legal action initiated

Posted : 13 February 2024

Esports Scotland, a Scottish events company, is facing renewed public scrutiny over outstanding payments totaling around £27,000 owed to contractors, players, and staff. The majority of the debts stem from the Scottish Esports League Season 5 (SEL 5) held in November 2022.

 

Founder and CEO James Hood expressed the hope of clearing all debts by June. EPIC.LAN Managing Director Jon Winkle has claimed that Esports Scotland failed to update its statutory records on Companies House, and he is pursuing legal action against the company through the Scottish courts.

 

Winkle compiled a document detailing the debts owed by Esports Scotland, with the figure totaling £26,233. The debts include prize pools, contractors, and casters, with the oldest dating back to June 2022.

 

Winkle initiated legal action against Esports Scotland, stating the importance of bringing attention to the situation and pushing for real action to protect industry professionals from such business practices. Prior to the document's release, Hood claimed that Esports Scotland owed £15,000 in prize pools and £12,000 to contractors, with plans to repay the amount by June using revenue from upcoming business deals.

 

Esports Scotland faced initial reports of non-payments in November 2023, with a shift to a sponsorship revenue model before SEL 5 to expedite payments. However, intended sponsors fell through, leading to payment delays.

 

James Hood issued an official apology, taking responsibility for the payment and prize pool issues, expressing commitment to resolving them, and emphasizing his dedication to fostering a positive esports community in Scotland. Hood has made partial payments and plans to settle the remaining amounts once other business plans come to fruition.

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