Heroic's finances look bleak after financial reports go public

Days after Copenhagen Flames files for bankruptcy and shuts down operations, Heroic seems to have found itself in a grim spot as far their finances go.

A financial report disclosed that Heroic has incurred a massive loss over the course of 2022. As reported by pley, Heroic's financial records show that the organization has suffered a loss in excess of 116.8 Crore Indian Rupees (INR), 153 million Norwegian Krone (NOK) or 14.3 million U.S Dollars (USD) combined with a short term debt of around 38.7 Crore INR (50 million NOK or 4.7 million USD) which has to be cleared by the end of this year. The debt however is shared by Heroic and it's sister company, Heroic AS.

Going into 2022 Heroic's expenses in terms of salaries doubled from around 6.5 Crore INR (8 million NOK or 800K USD) to 14.2 Crore INR (18 million NOK or 1.8 million USD). Heroic in 2022 had 3 fully staffed teams for Counter-Strike: Global Offensive, Rainbow Six: Siege, and PlayerUnkown: Battlegrounds. They also had a Rocket League team for a short while in 2022, taking the tally to 4 fully staffed teams at one point.

It is suspected that ESL's Louvre Agreement and Blast's partnership might have been significant factors contributing to the current financial turmoil of the organization. In an independent auditor report, Crowe has mentioned that there is a great deal of uncertainty surrounding the future operational status of the organization.

With Counter-Strike 2 set to come out soon, may organizations are looking to find their way back into the Counter-Strike scene, creating a lot of demand. Finance seems to have hurt heroic at the worst possible time. Going into the Blast Paris Major 2023, the last CS:GO Major, Heroic's roster will inevitably shoulder this burden, as this Major looks to be a do-or-die for the organization.