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Cowana Gaming has announced the shutting down of its operations. The German esports organization made this announcement on its official Twitter page.
“For the first 2 years of Cowana Gaming we have always tried to be one of the top places to go for players, staff and creators and we have succeeded,” the organization wrote.
“Unfortunately, we also felt the effects of the international crises and a large part of our business was no longer executable.
“The protracted nature of these circumstances has led us to decide to discontinue the trip at the end of the year. We will make sure that any outstanding balances are paid by the end of the year.”
As revealed by the extensive statement on the Twit longer post, Cowana Gaming will be shutting down operations at the end of the year, having cited “international crises” as one of the main reasons for its decision.
The company which was founded in 2018 by Cowana Marketing, a gaming and esports marketing company, is mostly known for its Rainbow Six team. It is also known for its Counter-Strike: Global Offensive team which participated in the ESL Meisterschaft and 99Damage leagues in Germany.
Although the organization did not share any specific details, it revealed that it will pay all outstanding balances before closing its doors.
While Cowana Gaming had shared that “a large part of the business is no longer being executable” due to an “international crisis” which has led the company to discontinue its operations, the company also stated that “the protracted nature of these circumstances” had led them to decide to cancel the trip at the end of 2022.
According to a recent interview held with a German media company, the Chief Executive Officer of Cowana Gaming Michael Wamser, said that the company could no longer finance its esports endeavors solely through sponsorships and partnerships. He added that the venture was not financially viable for Cowana GmbH, the parent company of Cowana Gaming.
Wamser also stated in the interview that a lack of professionalism exists within the esports scene, particularly in Germany,/a>, and that several partnerships the company pursued did not pan out and they often do not provide the necessary funding. Former Cowana employees also shared with the media company that payments to creators often came late.
Players Michal ‘OKOLICIOUZ’ Glowaty and Kevin ‘HS’ Tarn reported that their salaries and prize money were fashionably late. Additionally, according to internal sources within the organization, employees were the last to be paid, causing long delays between payments.
Although Cowana did not make any official statements about the payment issues, they did say that the company will pay everything it owes to its staff by the end of this year. Additionally, all employees have been allowed to seek other opportunities elsewhere without any contractual penalties being applied.
“As of this post, all existing players, managers, and co. are free to move at any time without a transfer fee,” Cowana Gaming said.
“Our contracts run until the end of the year, but everyone is free to leave early. We would like to apologize from the bottom of our hearts and we hope that you, our community, understand our decision and maybe we can make a clean cut.”
