The International Esports Federation (IESF) announced today that it has resolved the controversy surrounding prize pool deductions from its 2024 World Esports Championship (WEC) held in Riyadh. The federation confirmed it will distribute the full prize amounts initially promised to participating federations after previously withholding 15% due to financial reconciliation discrepancies.
This decision follows significant criticism from several national federations, particularly Portugal, which publicly accused IESF of mismanagement and unfair treatment. As previously reported by The Esports Advocate’s James Fudge, the Portuguese Esports Federation alleged serious inconsistencies and demanded accountability, even calling for resignations within the IESF leadership.
In today’s statement, IESF attributed the issue to differences in accounting practices and timing between its own financial operations and those of its Saudi hosts. According to IESF, both parties have since reconciled their records, and all affected federations will shortly receive the full outstanding balance.
“Differences in accounting systems, invoice timing, payments, and financial balancing have led to temporary imbalances,” the federation explained. “Following close coordination between both financial teams, all discrepancies have now been addressed.”
The controversy first emerged when several federations received prize payouts reduced by 15%, attributed to Saudi-imposed withholding taxes. The matter escalated when Portugal and other federations learned that some countries had been mistakenly paid in full, sparking accusations of discrimination and incompetence.
IESF’s Audit, Risk, and Governance Committee is currently conducting a final review to ensure compliance with internal governance frameworks. Once completed, payments will be fully released to federations awaiting their funds.
The reversal of the deductions is part of a broader effort by the IESF to address ongoing transparency and financial management concerns, issues recently highlighted in The Esports Advocate’s investigative coverage of the federation’s financial and governance challenges. The organization’s choice of Lviv, Ukraine, as a potential host for the WEC 2025 event—amid significant geopolitical and financial complexities—further emphasizes its precarious operational position.
The financial turbulence within IESF has underscored ongoing stakeholder concerns about transparency and administrative capability. Today’s decision to rectify the WEC 2024 prize money issues will be closely scrutinized by investors, sponsors, and national federations alike, serving as a litmus test for the federation’s ability to restore trust and credibility moving forward.
IESF reiterated its commitment to transparency, pledging enhanced governance practices moving forward: “We appreciate the patience and understanding of the esports community as we bring this matter to a close.”
With future event hosting and partnerships already facing scrutiny, the resolution of this prize pool controversy is pivotal as IESF seeks stability and a return to credibility with stakeholders globally.