It has been well over seven months since the $100K HER Galaxy Apex Legends Open concluded, but the winning teams and League Spot—the tournament platform company that facilitated the event—have still not been paid by Dubai-based esports organization Galaxy Racer (GXR).
The tournament was originally billed as a means to raise awareness of the exceptional talent of women competing in Apex Legends in North America, and in that regard, it succeeded.
Sources familiar with the situation tell The Esports Advocate that there hasn’t been any communication between GXR and tournament winners or with LeagueSpot, since December. According to sources familiar with the situation, GXR owes LeagueSpot approximately $40K USD for its work on the Her Galaxy Tournament (LeagueSpot declined to comment on this story).
LeagueSpot, which does white-label tournament work and production in the U.S., put significant work into the $100K HER Galaxy Apex Legends Open, according to sources familiar with the situation. Sources tell us that the company built a custom, white-label platform with a landing page, supported competition management with additional staffing, built a gender verification system, and helped with strategic planning.
In December, after missing the 180-day payout deadline detailed in the contracts players signed to participate in the tournament (which would have seen payments disbursed on or around Dec. 22 or 23), a GXR representative told teams, in part:
“At this time, a set date for when payments will be received is still pending but Galaxy Racer is working diligently to get all payouts issued as soon as possible. Once the timeframe has been determined, you will be notified. Your continued patience is greatly appreciated.”
Earlier this week, GXR Chief of Staff Walid Singer told TEA in an email that the company hopes to wind down its efforts in North America and meet its obligations by the end of February:
“We are currently wrapping up the whole operation in North America and we expect all prize pools and pending dues to be finalized by the end of February. Realistically might happen before, but this is the update we are looking to commit to with our stakeholders.
“There has never been a scenario where we fail to pay our commitments. Even in the midst of all these delays, we are still processing everyone that is owed.”
He added, “…our finance rep in North America has told us, comms with the various stakeholders are happening, and we are always responsive to everyone. “
GXR has attributed many of its delays in paying financial obligations to its merger with Dubai-based Riva Technology and Entertainment. There hasn’t been much public communication on the status of this merger in a while, but Singer told us that it is still ongoing:
“Our global restructure is still underway, and thus I am not able to comment on the rest of the queries. “
While GXR’s payments to tournament participants and LeagueSpot have been greatly delayed, the company has made efforts to pay down its obligation in North America; following the close of its North American operations (which included HER Galaxy) in November, GXR paid employees that were laid off in full in early December.
Apex Legends developer Respawn Entertainment and publisher Electronic Arts did not respond to a request for comment.