Sentinel ownership group gives the company $3.4 million to keep operations running

The ownership group of Los Angeles-based esports team Sentinels has injected $3.4 million into the organization amid speculation of financial difficulties.

Sentinels, known for its strong social media presence and featuring world-class esports talent in Halo, Apex Legends, and Valorant, has received a multimillion-dollar cash injection from its ownership group. According to Sentinels’ most recent press release, the esports firm has received a sizeable capital investment of $3.4 million USD from its ownership group,

Sentinels stated in a release that the additional funding will enable it to grow into new markets and go on with its current esports initiatives. It’s unclear whether this entails bringing in teams and players for different games than Sentinels presently have.

Sentinel’s crowdfunding effort from last month revealed the organization’s staggering $695,000 monthly salary expenditure on staff, creators, and players. It’s reasonable to expect that the organization won’t be able to sustain itself for very long given how much money it spends each month.

The organization, however, anticipates a decrease in its monthly spending owing to a player cost reduction throughout the industry, so the financial infusion should go a lot farther. Sentinels is also planning its next financial infusion, but it won’t come from crowdfunding or ownership. The organization stated in a statement today that it is expected to get paid when Riot introduces Sentinel’s in-game digital content in its popular FPS title VALORANT.  As part of the partnership program, Riot plans to release team skins for partnered VCT teams in 2024.

Sentinels’ crowdfunding campaign is ending soon, was it a success? 

Sentinels’ crowdfunding campaign on StartEngine earlier in August disclosed that, in the event that the campaign is a failure, the organization would only be able to function for two to three months, putting individual investors at risk of significant financial loss. Sentinels CEO Rob Moore then provided clarification, saying that the crowdfunding effort is only a way for supporters to contribute to their preferred Valorant organization.

Furthermore, prior to the campaign’s start, Sentinels stated that “extra funds” would still be needed for the organization’s operations, regardless of how the crowdfunding project turned out. Since its August start, fans have contributed more than $150K to Sentinel’s crowdfunding projects. The option for fans to contribute to the organization through crowdfunding and get exclusive investor rewards is coming to an end on November 3.

Whether the crowdfunding effort is a success or not, the parent company’s recent cash infusion, the anticipated funds from Valorant Skin, and other factors have at least reduced the fan-favorite organization’s financial concerns for some time. As of now, speculation and rumors of the organization going bankrupt are no longer prevalent, but how long they will last is still uncertain.

Header: Sentinels