OG's latest financial report shows that the organization lost €2,919,146 (~$3,332,102) last year. These numbers confirm that the OG is struggling to stay afloat, and portend imminent disaster if they don't find a way to generate revenue.
After we reported on the unpaid prize money for 2024 last month, we reached out to OG for a statement, but the organization's CEO Daniel Sanders told us that OG's legal team advised him not to comment on the situation.
In the meantime, we were contacted by current and former OG employees who wanted to share information about how the organization is run, what has changed in recent years, what may have been at the root of the problem, and what may have caused the financial downturn.
"I'm not doing this to spoil OG," one current employee of the organization wrote to us. "I'm doing this because it used to be the best place I've worked my whole life and I'd like to go back to that time."
Questionable decisions
A series of questionable decisions, burning money to no end, and inexplicable hires can lead OG down an unwanted and dangerous path. We learned that while the organization ran out of liquidity in 2024 and can't pay prize money to some of its former players, promotions, new hires, and expansion into new games and regions were part of its financial recovery strategy.
In its 2024 financial report, OG reports the following:
2024 financial events have negatively impacted cash flow and resulted in uncertainty about the company's ability to continue as a going concern. Despite management's efforts to implement strategic measures to improve financial stability, the company has consistently incurred operating losses and is experiencing cash flow shortfalls. Consequently, there is significant doubt about the company's ability to continue as a going concern.
OG cites several reasons for its financial downturn: "Poor performance in key competitive games and broader changes in the esports ecosystem. Changes in game publisher support, league structure and monetization models."
They point to Valve's decision to discontinue the Dota Pro Circuit and change the Battle Pass model. However, while OG claims that its roster "underperformed at major tournaments, further limiting performance revenue and brand impact," some of the organization's actions have been aimed at expanding into new regions and new games. For example, OG now has more staff than it did in 2024, as well as more teams or "strategic partnerships," such as with the esports division of Malaysian soccer club Selangor Red Giants (SRG). The new games include four new titles, Honor of Kings, Marvel Rivals, EAFC and Mobile Legends: Bang Bang, the latter of which is part of the partnership with SRG.
OG is also entering new regional markets where they hope to raise capital. Asia Pacific (APAC) and China are their targets.
The Blind Leading the Blind: The controversy surrounding Calvin Chung
The man brought in to help the organization "gain access to one of the most valuable and challenging markets in global esports," as the OG states in its financial report, is known in the industry for filing for bankruptcy and disappearing with his players' prize money and salaries.
Kelvin Cheung, or his full name Jin Wai Kelvin Cheung, had two UK registered companies, MNM Esports (Molotovs and Marshmallows Limited) and DLC Studios, which went into liquidation. MNM Esports and Kelvin Cheung disappeared in 2023, owing over £200,000 to players and staff.
Jin Wai Kelvin Cheung has also deleted all of his western social media channels to return as the regional leader of OG China while using his middle name Kelvin, which can be seen as an attempt to avoid instant communication with MNM and DLC Studios.
According to sources close to OG who wished to remain anonymous, OG leadership was made aware of Jin Wai Kelvin Chung's past and the money he owed his former players, but all information was ignored. As a result, OG is trying to recover from a 3 million euro loss in 2024 by relying on a man with a more than questionable track record.
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