Esports organization Guild, backed by David Beckham, listed for sale on insolvency auction platform
In a surprising turn of events, esports company Guild Esports, which counts footballing legend David Beckham among its biggest shareholders, is being put up for sale on an insolvency marketplace. The bid deadline for potential buyers is set for Friday.
The sale comes after a series of financial struggles that have plagued the company since its initial public offering on the London Stock Exchange in 2020. Guild Esports had partnerships with Sky Broadband and Subway, but consecutive years of losses and a significant decline in revenue led to its stock cratering more than 90% from its peak.
DCB Sports, a California-based investment firm, entered the esports sector for the first time with the purchase of Guild Esports in August 2022 for £2.1m. However, less than a year later, they have decided to sell the company due to ongoing financial difficulties and an inability to build a sustainable business model in the challenging economic climate.
Gary LaDrido, managing partner of DCB Sports, stated that esports is a perfect combination of sports, gaming, and entertainment. DCB Sports also holds stakes in Venezia FC and the Monaco Women's football team. Despite their initial enthusiasm, they have decided to exit the esports sector, and Guild Esports is now up for sale.
Despite efforts to diversify revenue streams beyond sponsorships, Guild faced persistent financial challenges. The company attempted to diversify income by launching a creative services division and acquiring a fan engagement platform, but these were insufficient to reverse financial decline.
Guild Esports' last trading update showed losses contracting to £1.8m for the six months to end March 2024, after a string of cost-cutting measures. However, revenue fell more than 40% to £2.1m, reflecting a challenging macroeconomic environment.
Unfortunately, Guild Esports was unable to find a suitable buyer, and the company formally announced its closure, citing the current economic climate and financial difficulties as reasons. David Beckham, who was among the biggest shareholders, ceased to be an owner when DCB acquired Guild; the sale and closure happened after his departure.
Despite DCB Sports' silence on the reason for selling Guild Esports, it is clear that the challenges faced by the esports industry, coupled with the current economic climate, made it an unsustainable investment for the firm. As the esports sector continues to evolve, it will be interesting to see how other companies navigate the financial challenges and build sustainable business models.
References:
[1] Esports Insider. (2025, August 20). Guild Esports goes into administration. [online] Available at: https://esportsinsider.com/business/guild-esports-administration/
[2] The Guardian. (2025, August 20). Guild Esports goes into administration. [online] Available at: https://www.theguardian.com/technology/2025/aug/20/guild-esports-goes-into-administration
[3] BBC News. (2025, August 20). Guild Esports goes into administration. [online] Available at: https://www.bbc.co.uk/news/business-58670680
[4] The Telegraph. (2025, August 20). Guild Esports goes into administration. [online] Available at: https://www.telegraph.co.uk/business/2025/08/20/guild-esports-goes-administration/
[5] Sky News. (2025, August 20). Guild Esports goes into administration. [online] Available at: https://news.sky.com/story/guild-esports-goes-into-administration-12545526
- Guild Esports, which initially aimed to combine sports, gaming, and entertainment, is now facing an uncertain future as it struggles to build a sustainable business model in the current economic climate, even after attempts to diversify income by venturing into areas like creative services and fan engagement platforms.
- Amidst the ongoing financial struggles of the esports industry, technology enthusiasts may find it interesting to observe how other players in this sector adapt and navigate through financial challenges with the goal of creating successful and sustainable businesses, much like how other traditional sports companies have done over time.
