Sources: LoL team Phelan lose Munster Rugby deal amid missed payment claims - Dexerto
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Sources: LoL team Phelan lose Munster Rugby deal amid missed payment claims

Published: 15/Dec/2020 17:00 Updated: 16/Dec/2020 10:49

by Adam Fitch

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Munster Rugby Gaming is no more, at least in its current form, after allegations of missed payments towards the team’s partner Irish organization Phelan Gaming surfaced. Dexerto spoke with sources close to the situation, who allege that the money owed is in the thousands.

The situation first emerged when event organizer DreamHack and League of Legends developer Riot Games announced that Munster Rugby Gaming, previously known as Phelan Gaming, would not be competing in the 2021 NLC Spring Season.

Instead, the team team would revert to their original name and compete in their UKLC for 2021 – their domestic event which feeds into the NLC.

Phelan Gaming partnered with Irish rugby club Munster Rugby in April 2020 to expand into a “global gaming lifestyle brand,” but the alliance has already ended. The NLC update states that “operational constraints from the Summer Season” are responsible for the team’s departure from the tournament.

Now, sources close to the situation have informed Dexerto about the exact nature of that ruling and why the partnership ended prematurely.

Ciaran Walsh Phelan Gaming
UKLC
Pictured: Ciaran Walsh, CEO of Phelan Gaming

Phelan Gaming assembles a team for the NLC

Ahead of the inaugural season of the NLC, a merger of the UKLC and the Nordic Championship ran by DreamHack, Phelan Gaming — operating under the banner of Munster Rugby Gaming — had to assemble a team. April 1 marked the first day of work for the team’s head coach, general manager, and team manager.

Towards the end of the month, the organization sent an offer to hire a head of performance — a role that would see the employee work closely with Munster Rugby to build a brand in esports to “do what they did in rugby,” according to evidence provided to Dexerto. It was very clear at this point that Munster Rugby Gaming was the team, with almost no references to Phelan Gaming to be found in any communication.

It didn’t take long for problems to arise, however, according to insiders. After not being paid for work carried out in April, per sources close to the organization, a member of staff had to move in with another as they had nowhere to live. Other members were yet to be paid, too. Fast forward to June and an emergency meeting was held between the recently-assembled team and the CEO of Munster Rugby Gaming, Ciarán ‘Wings’ Walsh.

Those with knowledge of the situation claim that Walsh told staff in the meeting that he was working with Munster Rugby to get a grant that would allow them to be paid, and that June 19 would be the latest in which the money would be sent. The grant did not materialize and, according to sources, it was later confirmed by the rugby club that the organization never applied for the said grant.

Throughout this entire ordeal staff were working without having signed contracts despite their requests, sources have revealed. Blame was passed on to Munster Rugby for this, with Walsh explaining that the club has been “inefficient and slow” in getting them sorted. The rugby club, once again, confirmed to staff that they were not involved in this process.

As this entire ordeal progressed, it became evident that Phelan Gaming were effectively licensing the brand name of Munster Rugby and it was down to the organization to handle all operations. Dexerto was shown correspondence that appears to show Walsh, Phelan’s CEO, neglected to assume responsibility for shortcomings throughout.

Problems with payments progress

Shocked by the revelation that Munster Rugby Gaming was simply operating under the rugby club’s name via a licensing deal, the team still had to deal directly with Walsh to receive what was owed to them. What followed was a series of alleged lies surrounding payment, despite persistent requests and evident disgruntlement on the behalf of staff.

In one example, a team member was allegedly informed that payments had been sent on June 27 and they requested a receipt two days later. On July 1, a screenshot was sent that appeared to confirm that the money had gone out of a bank account — however, no specific information was shown to confirm that this transaction was legitimate.

Payments were still not received, insiders informed Dexerto, even leading to one of the staff members leaving the organization. Another member refused to work due to problems not being solved.

On July 5, staff started to receive the first drafts of their contracts. From evidence obtained by Dexerto, they were rife with errors — including mixed-up personal information from different members — and appear to not have been written by a lawyer. The drafts also mentioned that they would be contracted to Phelan Gaming, not Munster Rugby Gaming.

Two days later on July 7, payments had allegedly still not been received. Walsh also reaffirmed that he was able to pay due to receiving a “government grant”, according to sources. The following day, event organizers DreamHack were made aware of the aforementioned problems but struggled to hold a meeting with the team’s CEO.

On July 19, Walsh allegedly told one member of staff that he was “going to random banks” to try and resolve issues with payments. Money was received by some, but not all, on July 22. Instead of receiving the full amounts owed, sources confirmed that the team was informed this was a “bonus or a thank you” and additional to what was owed. This was later framed as being a salary payment instead of an additional reimbursement, according to sources.

Sources say that DreamHack informed the disgruntled team towards the end of July that payments should come at the beginning of August. This didn’t come to fruition. On August 5, a spreadsheet was created by staff and sent to Walsh which included rough estimates of what he owed. No payments were made until months later.

Munster Rugby Gaming NLC 2020
NLC
Munster Rugby Gaming didn’t last long in the NLC 2020 Summer Playoffs.

Fast forward to November 11, the former member who resigned after a couple of months finally received full payment from Phelan but only after five days of continuous pleading with the CEO. Almost two weeks later, the spreadsheet was amended anonymously and a significant amount of money was taken away from just a single person — an amount far surpassing the “bonus” that was previously paid.

Shocked by the revelation that Munster Rugby Gaming was simply operating under the rugby club’s name via a licensing deal, the team still had to deal directly with Walsh to receive what was owed to them. Although one staff member was led to believe that a transaction was taking place, it would be months before they received anything and they still have not been fully paid.

Dexerto has contacted Phelan Gaming for comment.

Fortnite

Epic Games sues Apple & Google in UK over Fortnite removals

Published: 16/Jan/2021 1:28

by Theo Salaun

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Following litigation over Fortnite’s app store removals by Apple and Google in the United States of America, Epic Games have officially mounted lawsuits against both tech companies in the United Kingdom, as well.

In August 2020, Epic Games added their own payment process to Fortnite’s mobile offerings so that Apple and Google’s cellphone and tablet users could purchase in-game items at a discounted price. This discount was specifically enabled by the new process, which bypassed each company’s transaction fees. 

Unsurprisingly, as the payment method was in direct violation of both the App Store and Play Store’s Terms of Services, each company subsequently removed Fornite from their offerings. And, expecting this, Epic Games responded by launching lawsuits against the companies in the U.S. and Australia. 

Now, the makers behind the world’s most popular third-person battle royale have tripled down and mounted legal action against both tech giants in the U.K. Citing violations of competition laws, Epic Games’ legal case in the U.K. is very similar to the ones already made in other countries. And, immediately contested, Apple and Google’s responses have proved similar, as well.

Fortnite Crew image
Epic Games
Fortnite’s Crew subscription service means even more payments for Epic Games.

As discussed by BBC News, Epic have officially submitted documents to the Competition Appeal Tribunal in the UK. The allegations suggest a monopolistic abuse of power by each company that centers around competitive restrictions to app store and payment processing options, as well as unfair payment fees.

Typically, those fees come at about 30 percent of all purchases, although exact figures differ depending on company and app. Fortnite is obviously one of the biggest games in the entire world, so almost one-third of their sales on mobile means hefty earnings.

But, like their other lawsuits, Epic allege that this is about more than their own profits. The company demands that Apple and Google begin allowing software developers to institute their own payment-processing systems and options to be downloaded outside of the App and Play stores.

Fortnite Crew Green Arrow
Epic Games
Fortnite has always delighted its fanbase with purchasable cosmetics.

So far, Apple and Google have both replied similarly in the U.K. situation, claiming that they are open to reintroducing Fortnite to their mobile stores but that they deny any violation of competitiveness.

Dexerto will continue to monitor the legal cases in each country, providing updates whenever these prolonged legal disputes begin reaching their conclusions.