In the wake of the closure of the H1Z1 Pro League, Jace Hall, chairman of the League, has spoken out following allegations that the League has failed to pay teams their stipends.
After the announcement that the H1Z1 Pro League would be closing, reports came out alleging that teams were not paid according to league participation agreements (LPA).
In an attempt to clear the air and set the record straight, the chairman of the League, Jace Hall, has issued an official statement on the issue.
When it comes to the matter of missing payments, Hall first explains that the $400,000 stipend was broken up between the two Splits. The first was paid according to the agreement, while the second payment for the now-canceled Split is the one at issue.
Hall further offers that there has been no breach of the LPA since the payment for Split 2 “shifted with the 2nd Split start date as those two events are contractually linked.”
As such, Hall says that the payments will come within the League calendar year, which ends on December 31, 2018, giving the League over a month to issue teams the final payment.
According to ESPN’s report on the matter, the payment for the second split was originally due by July 28, which was six weeks prior to the start of the second split, per the LPA.
Nonetheless, Hall emphasized that these procedures, including the shifting of the second split payment timing, were a part of the original agreements signed by the teams.
“This is what all the teams have agreed to and nothing was ever changed or altered about this. The teams have been well aware of this from the beginning,” Hall offered on the LPA.
Hall also responded to a report from VPEsports that cited sources who alleged reckless spending was a reason behind the league’s closure, saying the money spent on promoting the League was “below or on par with the amount of promotional spending done around other premium leagues.”
You can read his full statement below:
"The League has an obligation to pay the teams their support stipends within the League calendar year. It has already paid the teams $3,000,000 ($200k each x15) prior to Split 1 as assistance. It’s the responsibility of the teams to properly disperse that support according to whatever their player agreements are. There has been no Split 2, and there will not be a Split 2, yet the League still intends to meet its obligations to the teams. There has been no breach of the LPA. 2nd Split payment timing shifted with the 2nd Split start date as those two events are contractually linked. Now with no Split 2 happening, payment defaults to remain within League calendar year.
The League agreement requires the League to provide the Team representatives with audited financial statements,” Hall said. “Which are to be prepared within 180 days after the close of the League year. There is no right to receive any unaudited or interim financial statements. Thus, no audited financial statements have been or can be obtained for 2018. Given standard auditing practices and time frames, audited financial statements would normally be prepared and obtained some months into 2019.
The League Year does not end until December 31, 2018. Thus, no audited financial statements have been or can be obtained for 2018. Given standard auditing practices and time frames, audited financial statements would normally be prepared and obtained some months into 2019.
This is what all the teams have agreed to and nothing was ever changed or altered about this. The teams have been well aware of this from the beginning.
The League certainly spent money to promote the league, the teams, the players and to enhance both the game and its broadcasts. That demonstrates the good faith, good will and dedication we have had toward making absolute best efforts. The amount of money we have spent marketing is the best we could do within our scope/timeframe and is below or on par with the amount of promotional spending done around other premium leagues.
Our League has provided an unprecedented amount of stipend money to teams, spent as much as it could not only promoting but creating a top-quality broadcast production and despite the fact that the game suffered a severe decline, we are still working to stand by our contractual obligations by League calendar end.
There has been absolutely nothing done with this League other than the best and most honest efforts."
Source - The Esports Observer