Copenhagen Flames has filed for bankruptcy and terminated all personnel, according to a letter penned by CEO Steffen Thomsen today, bringing an end to a prominent Danish organization that’s competed in CS:GO for seven years.
In his letter, Thomsen acknowledged the trend of esports clubs and organizations struggling financially and noted that the past six to nine months have been “absolutely horrendous” in terms of securing partnerships of any kind, whether it be via acquiring new ones or extending current ones. Thomsen said marketing budgets getting slashed reduced the club’s “most important source of income.”
But Thomsen also highlighted the dangers and impact of missing out on the illustrious Majors, especially for a club that expanded after reaching previous iterations of the tournament.
Copenhagen Flames qualified for both PGL Stockholm and PGL Antwerp in 2021 and 2022, even reaching playoffs in Antwerp. After that, Thomsen said the team “had great momentum” and felt that they were in a stable place financially. It was at this time that the Flames picked up a new roster of all Danish players, while members of the previous roster left the organization for destinations like G2, Heroic, and Fnatic.
However the new team missed out on qualifying for both IEM Rio and the upcoming BLAST Paris Major, as qualifying for Majors secures income for the team but also grows brand recognition and exposure. Thomsen said the organization attempted to avoid this result by creating different income streams and cutting spending, but with potential investors put off by how the esports scene has developed the past year, Copenhagen Flames were unable to keep the doors open.
At time of writing, Copenhagen Flames manages a mens, womens, and academy CS:GO roster. Thomsen wrote that Copenhagen Flames management “will continue to look out for their best interest in the upcoming process.”