According to a report in French outlet Vakarm.net, the Counter-Strike Professional Players Association (CSPPA) could file a lawsuit against the now-defunct FLASHPOINT brand’s owners over revenue shares owed to players. There could be as much as $1.5M owed to players at this point, although the amount is somewhat academic if FLASHPOINT is now broke, as reported this week.
The suit would actually be against B-Site, the parent company of FLASHPOINT, and relate to the minimum amount guaranteed to everyone who signed on to be part of the project. It is somewhat ironic that the players were the ones who lost out on payments given the league promised to address core issues in esports like a lack of profitabilty, but the contracts signed guaranteed a figure around the $500K mark being divided amongst the players each year, none of which was apparently paid.
Flashpoint collected over $10M in buy-ins
To be exact, the company promised $457,500, $472,500, and $502,500 would be shared among the players in years one to three respectively of the tournament’s life span. This presumably was due to keep rising over time, but obviously did not, with the failure of the project meaning that FLASHPOINT events are just a memory now.
However, the company still claimed to have taken as much as $12-16M in investments at the start of their lifespan, with each member team paying $2M as a buy-in, meaning a total payout of around $1.5M over the course of three years was perfectly feasible even. There is also some irony with the fact the CSPPA were at one point responsible for FLASHPOINT losing sponsors, and therefore income, due to a row over monitors.
The odds of a successful suit are fairly low, at least when it comes to recovering the lost money, with B-Site having essentially run the FLASHPOINT brand into the ground, and the project now dead. At this point the CSPPA are collecting signatures of players who were at FLASHPOINT orgs during that period to gauge the level of support they might have for a suit, and we’ll keep you updated with any developments.