Report: Esports Entertainment Group to sack CEO
Grant Johnson to depart after a torrid 12 months with First Capital Venture’s Gary Graham set to take charge
Esports Entertainment Group (EEG) CEO Grant Johnson has been sacked following the operator’s recent woes, according to recent reports.
According to Sharpr, Johnson has been relieved of his duties, with First Capital Venture’s CEO Gary Graham rumoured to take over.
Graham’s firm has been a long-term investor in EEG since 2017, with a number of disclosed investments in the company amounting to $1.2m (£990,000).
At the time of writing, emails to Johnson’s company email registered as ‘undelivered’.
Johnson joined EEG as CEO in May 2014 following a lengthy career in the health and finance sectors.
The firm has confirmed that it has received approval from the Nasdaq Hearings Panel to continue its listing on the Nasdaq despite the fact the shares in EEG have plummeted 97% in the last 12 months.
News of Johnson’s sacking comes as part of EEG’s continued downfall. Back in May, as part of its earnings report, the firm stated that it was going to “aggressively” cut costs across its brands and deprioritise non-core assets to try and record savings.
Then, at the end of October, the firm announced the closure of its esports-dedicated sportsbook Vie.gg after less than a year.
Vie.gg launched in New Jersey in January, with Johnson expecting to draw in revenue of between $1m and $2m. This proved to be wildly inaccurate as, in August, the brand had returned a meagre $590 in revenue.
EEG also shuttered the SportNation and RedZone brands in the UK at the end of November.
EEG acquired the brands from parent company Argyll Entertainment in July 2020 for $7.8m as part of an aggressive M&A strategy.
An SEC filing in October revealed that EEG was facing difficulties with the Argyll brands, which had led to reduced marketing spending and a lowering of financial performance expectations.
EEG currently operates Bethard and Dino Lucky Gaming.