Copenhagen Flames Go Bankrupt

The Danish esports organization face financial ruin after a seven-year run in the CSGO scene 

Copenhagen Flames have ceased operations after filing for bankruptcy and laid off all of their employees. The company’s CEO Steffen Thomsen wrote an open letter to make the news public. 

Thomsen's recent letter has addressed the harsh reality of esports clubs and organizations struggling financially in the current financial landscape. He revealed that securing sponsorships has been nearly impossible over the past six to nine months due to reduced marketing budgets, which have had a significant impact on the club's income. 

Dear Flames fans and followers, it has been an absolute privilege to be a part of your lives for the last 7 years.

We have filed for bankruptcy.

Please read our statement here:https://t.co/ncB6wh2NSl

Thank you and BringTheFlames ♥️🔥 pic.twitter.com/h29Ssp3hlv

— Copenhagen Flames (@CPHFlames) May 1, 2023

Thomsen also drew attention to the potential consequences of missing out on several CSGO Majors, particularly for a club that has grown in size after previous tournament appearances.

The Copenhagen Flames were riding high after qualifying for both PGL Stockholm and PGL Antwerp in 2021 and 2022, even making it to the playoffs in Antwerp. Thomsen said that the team was in an excellent financial position and had a lot of momentum. That's when they brought on a new roster of all Danish players while some members of the previous team joined other top organizations like G2, Heroic, and Fnatic.

The new team, unfortunately, fell short of qualifying for both IEM Rio and the upcoming BLAST Paris Major, missing out on a huge opportunity to secure income for the team and increase brand recognition and exposure. Thomsen revealed that the organization did everything they could to prevent this outcome, from diversifying their income streams to cutting back on expenses. With investors increasingly wary of the esports scene, however, the Flames were unable to stay afloat. 

Only two weeks before having to close shop, Copenhagen Flames were still optimistic about securing a 5 million DKK ($740,000 USD) investment to solidify their financial standing and set the stage for a profitable future. Despite their best attempts to court potential investors and secure new partnerships, the company were unable to bring in enough support to keep the lights on.

Copenhagen Flames became the second Danish organization to go under over the last two weeks. On April 12, Tricked Esports also had to close their doors citing financial insolvency.