North Esports Ceases Operation
The year is starting on a terrible note for Danish esports organization – North – as they have announced their closure after only four years of operation. The reason for the closure as per the announcement is the inability of the parent companies to continue financing their operation. As most organizations and businesses took a major hit during the pandemic, North’s parent companies, Danish entertainment companies Parken Sport & Entertainment (PS&E) and Nordisk Film, also felt the brunt and eventually made a joint decision to focus on their core business.
Both companies also made an announcement stating that the effects of the covid-19 pandemic is the main reason for their decision. They are both very displeased with the decision but clearly stated that there is no way they can continue to finance North Esports and stay afloat. Both investors stated that they are very sorry to close North as they recognize their efforts and how much of an impression they have made in the international esports scene.
There are other partnerships that the Danish team went into while in operation. However, the value from those partnerships was not enough to keep the organization alive. Some of the organizations North was in partnership with are;
- MM Vision (Danish computer manufacturing firm)
- Nocco (Sweedish made energy drink)
- EPOS ( Danish audio company)
- Capgemini (French-based tech company)
The Chairman of North and Director of Parken Sports & Entertainment, Lars Bo Jeppesen, stated that they went in search of investors who would be the right match for North before the dissolution of the organization. With the closure of the organization, it is evident that a “right match” was not found. North required continued investment to stay in business, but it was not an easy task.
Jeppesen has acknowledged the enormous potential in esports and gaming but is also aware that its effects are long term and uncertain. Also, the effects of covid-19 have impacted the esports industry negatively as the continued growth and progression of the esports industry has slowed down significantly based on their assessment. In all, its investment in the FC Copenhagen football club will continue.
North had rosters in three major esports games – CS:GO, FIFA, and Apex Legends. It is unclear what will become of the players in these rosters but the FIFA roster will be taken over by the affiliated FC Copenhagen. The take-over will ensure that they continue to take part in the eSuperliga competition.
It is a sad day, as it was said by North through their Twitter page. The organization held so much promise and could have made major strides in the esports industry. The news came as a shocker as no signs were leading up to the announcement. It is strange because some of the biggest brands in the esports industry still struggle to make a profit. However, we can understand the standpoint of the parent companies as we are sure it was not an easy decision for them to make. In the end, the support for traditional sports was favored over that of esports. We will keep our ears open for more information regarding the rosters of the CS:GO and Apex Legends.