David Beckham鈥檚 eSports team Guild is staring down the barrel of 拢1.4 million liabilities before the end of September – with a current cash position of just 拢25,000.
However it has accounts receivable – money it is owed in the period – amounting to 拢1.52m.
Guild Esports PLC is co-owned by England legend Beckham. His former Manchester United manager Sir Alex Ferguson is famous for describing the decisive final stages of a season or game as 鈥榮queaky-bum time鈥� – and the phrase has now entered the dictionary.
Announcing the preliminary findings from an ongoing strategic review, listed Guild – described as a global gaming-focused media business – said it is 鈥渁ctively exploring a range of options to allow the company to meet its short-term liabilities as they fall due鈥�.聽
Measures under consideration include securing additional funding, negotiating improved payment terms with creditors, and further cost reduction initiatives to conserve cash reserves.
It added: 鈥淭he board is reviewing the strategic direction of the company, including the realisation of assets to generate cash or whether the company would be best served by being part of a larger group.鈥�
The eSports team, which recently qualified for the Esports World Cup, reduced its loss before tax for the H1 2024 fiscal year by 21% to 拢1.8m. However, revenues and gross profit for the October 1st 2023 to March 31st 2024 period decreased to 拢2.1m and 拢1.39m, respectively.
It currently runs teams in Apex Legends, Call of Duty: Warzone, EA FC, Fortnite, Street Fighter, Sim racing (ESL R1), Tekken and Mobile Legends Bang Bang, the latter a partnership with R8 Esports.
A Dubai investor recently acquired 8.28% of Guild Esports voting shares.
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