Enthusiast Gaming's largest shareholder is calling for the removal of the company's CEO and board of directors.
Enthusiast Gaming owns Luminosity, Vancouver Titans, and the Seattle Surge. The esports org has come under fire due to a letter written by Greywood Investments that addresses issues with Luminosity. The letter called out Enthusiast Gamings' board of directors and warned that the company was in trouble unless major changes were made. The biggest change? Drop the CEO.
Read the letter: "We came to this conclusion after a lengthy, careful, and diligent assessment, during which we consulted with independent third-party firms, industry players, executive recruiters, prior employees, current employees, shareholders, and other stakeholders. Our primary and clear conclusion is that the Company’s current Chief Executive Officer (EO), Adrian Montgomery, is a detriment to the Company’s management, operations, communications, and growth strategies and Enthusiast is failing to realize its potential under his leadership and under the direction of the Board of Directors, as it is currently constructed."
Greywood accused Montgomery of creating a "culture of divisiveness." They went on to explain that the company's reputation is "eroding" due to Montgomery's poor leadership direction and underperforming growth strategies. The letter stated that this "cannot continue," allowing Greywood to "lead a campaign to change the leadership at Enthusiast and will be providing advance notice of our nomination of several highly qualified, accomplished, and interested individuals to serve on the Company’s Board and to act in the best interests of the Company and its stakeholders."
Greywood also took aim at the board members, stating that they "failed to provide proper oversight" of conflicts and reported incidents. They called the board's judgment into question and have concluded it's an "unhealthy and harmful culture." One of the issues has become, according to Greywood, a lack of women and other "appropriate individuals" taking leadership roles.
Said the letter: "The directors, who should have comprehensive knowledge of the Company, seem completely unaware of the work atmosphere propagated by Mr. Montgomery and the many dysfunctional management relationships. It does not appear any effort has been taken to determine why valuable employees have left or threatened to leave the Company (including the Chief Operating Officer) or the difficulties in recruiting new talent, which has led at best to voids in the Company’s organizational structure and operations, and at worst to the development of a divisive work environment."
Despite all of these issues with the CEO and the board, Greywood stated that they see "tremendous potential" with Enthusiast Gaming. Their goal now is to replace the CEO, remove most of the board members, and relocate the company to Los Angeles or New York City. They are also demanding more communication and transparency, creating a workplace where nobody is afraid of expressing their views or pushing for innovation.
Greywood stated that they will be nominating some potential candidates come June.
Vancouver Titans faced backlash at the height of the COVID-19 epidemic after letting go of its entire Overwatch League team. Enthusiast Gaming then laid off most of its editorial staff with allegedly little warning in March. This was just months after launching their esports-oriented editorial website. That same month, Enthusiast Gaming reported a nearly $42 million loss in 2021, double what the org lost in 2020.
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