Melty eSports decided to shut down its eSports section this month. However this decision was not something that was in the works. Indeed as recently as a month ago, the organisation was negotiating new contracts with the players. However with new laws coming into effect in France this has undeniably made it a unprofitable venture for melty.
“A month ago, we were still talking about signing our players to new professional contracts,” Tixier says. The Numeric law, which went into effect on Oct. 8, introduced fixed-term contracts for esports athletes.
He goes on to add more about the scenario :
“Indeed, the fixed-term contracts would cost €4,000 to pay a player €2,000. And up until now, almost no one earned enough to use it. But there are still independent contracts. It is barely legal, but is not forbidden.
Today, very few earn enough to use the new contracts. But that might change very quickly. It is a very good law, because it gives a legal framework and a legal entity to the pro players. The government managed to plan ahead, which is a very good thing.”
Meltyś decision to close down comes more from logical reasoning than anything else. The performance of the rosters and the lineups were perfect however that being said there was no way they would be able to compete with Webedia which invested an amount equal to Meltyś budget for a year and a half. Melty is a media company and the esports section is in the sidelines, there was no way they would have been able to invest such a large sum of money.
“melty has a yearly revenue of 8 million euros. When Webedia bought Oxent, Bang Bang Management, and the PSG rights, it spent roughly the revenue of melty for a year and a half, within a day. There is no way melty could follow, and that’s why I understand the decision to close the club. melty is mostly a media, and it can’t be competitive in front of such investments. The decision is logic, and rational, even though it penalizes the team and the project I brought to melty for the past two years.”
Read the full interview at Esportsobserver.