Team Reciprocity owner reveals bleak future of org in emotional message - Dexerto
Esports

Team Reciprocity owner reveals bleak future of org in emotional message

Published: 21/Mar/2020 0:01 Updated: 21/Mar/2020 0:09

by Bill Cooney

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Chad Larsson, the owner and founder of Team Reciprocity, has shared a somber update on the bleak future facing the esports organization with fans.

Reciprocity was founded in 2017 and fielded teams in multiple esports titles like Apex Legends, Call of Duty, Gears of War, Rainbow Six Siege and more over the last few years, but had been steadily letting teams go in the weeks leading up to Larsson’s announcement.

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The founder and owner of the org claimed Reciprocity would be taking a “bare bones” approach in an attempt at long-term survival to make it through the current economic downturn.

MLG
MLG
Reciprocity disbanded their CoD team following the 2019 CWL Pro League.

Larsson said in the video that Reciprocity’s funding from donors had basically dried up in the last few months, with the world’s economy not in its best shape.

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“We were raising interim financing, this financing has since dissolved given the astronomical crash on the global capital markets,” the owner explained. “This has positioned Reciprocity to scale down to bare bones in order to survive long-term, the current market conditions.”

It only took a matter of weeks, Larsson said, for everything that he and his team had done to build the Reciprocity brand to disappear.

“What my team and I have built over the last couple of years, literally pouring blood sweat and tears into this since inception, is being dismantled in a matter of weeks,” he continued. “We will be releasing all staff, and scaling down to our Crossfire franchise and our co-ownership with Ranbow7 [LoL].”

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While the organization will continue to attempt to raise funds, the owner apologized to all the fans and players who had supported them through the years, but promised that this isn’t the end for Reciprocity.

One of the most disappointing results from the news is that Reciprocity’s Rainbow 6 team, which was considered one of the best in North America, is officially being let go.

Siege.gg
Team Reciprocity’s Rainbow Six squad was one of the best in North America in 2019, but now all the players will be looking for new homes in 2020.

Reciprocity is the first big-name esports org to feel the pressure from the current economic situation, but the way they raise money isn’t unique at all, so we could be seeing more organizations making similar announcements in the future.

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Business

Esports provides staggering boost to UK economy

Published: 20/Oct/2020 13:00

by Adam Fitch

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A report commissioned by UK video game trade body Ukie reveals surprising statistics about the nation’s esports performance, both domestically and globally.

The report from Olsberg•SPI with Nordicity, named “The Value of Esports in the UK,” looks at the economic impact of esports in the United Kingdom, offering an overview of the ever-growing industry and how it affects trade regionally.

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One of the most promising takeaways from the research is that esports has grown in the UK at an average annual rate of 8.5% between 2016 and 2019. This will be some attributed to the rise of esports on a global basis, with UK organizations such as Fnatic and Excel witnessing dramatic growth over the time period.

It’s also that the sector supported over 1,200 jobs in 2019, even though it’s estimated that the UK represents under 8% of the entire global esports market. North America and Asian countries such as China and Korea are undoubtedly the largest players in the market. Nonetheless, findings suggest that esports contributed £111.5 million ($144.4 million) in gross value to the UK economy throughout the last year.

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Fnatic competing in the LEC
Michal Konkol/Riot Games
Fnatic have expanded in the past year but are still based in the UK.

Based on the results of the study, Ukie believes that governmental inclusion will be a catalyst — and necessary component — of growth in UK esports. The trade body recommends that regular engagement should be established by industry players and the Department for Digital, Culture, Media & Sport; this has already been an increasing reality in 2019 and 2020.

It’s worth noting that the United Kingdom found itself represented regularly in major leagues through long-term partnerships and franchising. This includes Fnatic and Excel Esports’ inclusion in Riot Games’ LEC, Cloud9’s London Spitfire franchise in the Overwatch League, and Rogue’s parent company’s London Royal Ravens in the Call of Duty League. These cemented positions serve as constant promotion for UK esports.

“Esports is a global sector at the intersection of technology, creativity, broadcast and entertainment – all areas of real national strength for the UK,” said Ukie’s CEO, Dr Jo Twist. “This report shows us that the UK has a strong and growing esports industry, but that there is more to do to capture the full potential of this exciting, high-growth sector.”

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London Royal Ravens Home Series Event
CDL
London Royal Ravens hosted their own event in the UK earlier this year.

Another major suggestion based on the report is that the immigration system needs to be clearer as far as esports players and talent are concerned. While countries such as Germany have made huge advancements on this front, things are still foggy in the UK.

The main takeaway should perhaps be that while the nation is still not quite the force many would love for it to be, it’s on a promising trajectory.