In a Q&A with Digidayโs Alexander Lee published Thursday, Version1 Chief Operating Officer Brett Diamond said that the company is exploring all options as itโlike many other esports organizationsโnavigating a challenging financial environment for the industry.
One of the avenues that the Minnesota RรKKR owner is exploring is a merger or an acquisition similar to what happened between NRG Esports and CLG owner Madison Square Garden Entertainment earlier this month.
โWeโve started the process to explore options for the future of the organization,โ Diamond told Digiday. โThe focus currently is on pursuing a merger with another org that we feel aligns with our view and our ownership groupโs view of the esports industry.โ
Diamond added later in the conversation that his company has hit its financial projections every year, indicating that it is currently in good financial shape.
Other options the company is exploring are further investments or pivoting the businessโ focus.
Several important factors were not discussed in the Q&A, such as how the company plans to adjust to the costs of player salaries; franchise fees from leagues like Overwatch League (OWL), Call of Duty League (CDL), or League of Legends Championship Series (LCS);ย or financial support from publishers (sharing of sponsorship revenue, in-game sales, or media rights).
As noted earlier, Version1 owns CDL team Minnesota RรKKR and a CDL minor league team called RรKKR Academy, as well as teams in Rocket League and Valorant. The company also employs a handful of content creators.ย