LGD Gaming face financial difficulties amidst reduced revenue

News flash, a recent investigation revealed by the Chinese YouTube channel, Dota Lin, sheds light on the rumored financial difficulties of LGD Gaming, a distinguished name in the Chinese esports scene. The report titled “Is LGD Facing Bankruptcy?” delves into various sources, including insights from notable figures such as Ame, Chalice, and LGD’s general manager Da Fei. These conversations have sparked widespread speculation regarding the financial stability of this esports giant.

LGD Gaming face financial difficulties amidst reduced revenue

(Image Credits: LGD Gaming)

Unpacking the Rumors of LGD Gaming’s Financial Problems

The investigation outlines a series of financial difficulties purportedly faced by LGD. Among the key points raised were LGD’s operational costs, which reportedly surged to $20 million annually during the pandemic, a significant increase from its pre-pandemic expenditure of merely $9 million per year. This financial strain was attributed to a combination of factors. These include heightened operational expenses and reduced sponsorship revenue, which plummeted from $10 million to $3 million annually.

Specific allegations cited include:

  • The failure to pay Chalice’s bonuses for The International 10.
  • Ame casually saying he would like to get paid.
  • Newer LGD players are underpaid and hinting at it by changing their in-game profile names to “vagabond” or “homeless”.
  • LGD’s headquarters moving from Shanghai to Changsha, presumably to lower rental expenses.
  • LGD offered increased salaries to players following the esports debut of Elephant, requiring LGD to secure high-profile talents. For example, Zhang “Faith_bian” Ruida, Zhang “xiao8” Ning, and Zhang “y`” Yiping, who are all TI-winning players.
  • An overall increase in the financial burden to maintain the TI10 squad amidst the dearth of sponsorship deals, such as losing the Paris Saint-Germain F.C. sponsorship.
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Moreover, the narrative of financial distress is further supported by LGD staff and players’ social media activity, hinting at underpayment issues within the organization.

Thoughts by Ame

Wang “Ame” Chunyu, in November 2025, even blatantly shared concerns over LGD Gaming’s fiscal capabilities to sustain its main Dota 2 roster. Amid speculations of LGD possibly forming a secondary team, Ame expressed skepticism, questioning the feasibility of such an expansion given the existing financial constraints.

LGD Gaming face financial difficulties amidst reduced revenue

Wang “Ame” Chunyu (Image Credits: Epicenter XL Dota 2 Major)

LGD’s Historical Accomplishments

Despite these financial difficulties, LGD Gaming’s contribution to the esports industry, particularly in Dota 2, remains unparalleled. The team has amassed over $25.6 million in winnings, marking its presence with significant achievements in high-stakes tournaments, including several commendable placements at The International Championships and a victory at the Riyadh Masters 2025, as listed here:

  • 3rd at the International 2015 ($2.2m)
  • 4th at the International 2017 ($1.7m)
  • 2nd at the International 2018 ($4m)
  • 3rd at the International 2025 ($3m)
  • 2nd at the International 2025 ($5m)
  • 1st at Riyadh Masters 2025 ($1.5m)

The rumors around LGD Gaming’s financial struggle paint the recent struggle of an esports org to maintain operations. While the alleged financial difficulties suggest a period of uncertainty, LGD’s historical successes and viability remain a testament to its resilience.

As fans await further clarity on LGD’s financial struggles, it would be a shame to see such an institutional organization finally fall.

AESA
AESA

The AESA is a member of the International Esports Federation (IeSF) as a national member representing Australia. Currently the IeSF comprises of over 88 nations and is signatory to the World Anti-Doping Agency and actively working towards SportAccord membership.