After the previous Denial Esports management disbanded due to an incident from failing to pay player salaries, it has happened yet again. Denial Esports co-owner Zachary Smith has announced he is stepping down from the North American esports organization’s daily operations.
— Xac (@ZachtehCEO) May 15, 2019
This comes after accusations from its former French Call of Duty roster of stalling and missing payments to players. Another allegation also includes the organization’s failure to pay for Overtime Esports’ CWL Pro League spot.
Smith confirmed in the personal statement he released on Twitter that the statement is “technically true.” However, he goes on to mention that the player “knew and agreed to the entire situation.” The situation is described as being there because of immigration laws regarding work authorization and visas.
The organization was not “legally permitted to pay the player a salary until… a proper visa [had] been issued.” With this matter at hand, a solution was created. Although, it does seem the contract, which writes, “player shall receive a salary negotiated in good faith,” seems vague.
Smith later called the statements made by Nathan “Natshay” Dupuis “false public allegations” though. To conclude this part of the statement, the organization has set up an escrow account instead. The account will hold funds that will make up for the “alleged owed salaries” of the players involved.
Smith later goes on to say that the organization, which he describes as a startup in the esports industry, had been “running too fast for [its] own good.” With this statement, Jerry Nguyen will move up to the Chief Strategy Officer role from his prior Strategic Advisor role. Nguyen will oversee the strategy of the organization and “enable more transparency” between the business side and the players.
The debt has been agreed upon for Denial.
The players are happy.
We will issue in a new age of the org and it’s legacy.
Someone tag Stephan Crystal and tell him we need to do our monthly board minutes. He says he’s an attorney. He should know this.
— Xac (@ZachtehCEO) December 19, 2018
With teams in Counter-Strike, H1Z1, Rocket League, and more, the former organization disbanded mostly because they had not paid their players. Other things like stalling from upper management and third parties pursuing legal action against the organization were included.
In December of 2018, Zachary Smith along with former Anaheim Pirates owner Patrick “BlackBeardAP” E. Smith Sr. announced they were acquiring the organization and were ushering in a “new age of the org.”
However, the statement by Overtime Esports describing how they had not received their money from the sale of the CWL Pro League spot was not addressed.
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