The Professional Esports Association (PEA) has decided to go through with its earlier claims and is cancelling its inaugural CS:GO league.
“It has become clear to the PEA organizations that there isn’t sufficient financial support in the ecosystem, either from broadcast/streaming partners, sponsors or others, to profitably operate a third prominent online league, due to the over saturation of the marketplace and the recent upward spiral in operating costs,” said PEA in a statement.
PEA was formed last year by commissioner Jason Katz and the owners of seven North American Counter-Strike organizations: Team Liquid, Cloud9, Team SoloMid, Immortals, NRG Esports, CompLexity Gaming and Counter Logic Gaming.
The goal was to organize competitive events and give “unprecedented benefits” to players. Last month, it came to light that PEA teams were planning to collectively withdraw from the ESL Pro League without notifying the players.
The lack of communication was not appreciated by the players who had been left in the dark over such an important decision. As such, PEA decided to call a vote between the well-established ESL Pro League and its own PEA League. The voting ended yesterday with majority of the players siding with ESL.
PEA had stated that it would withdraw from the Counter-Strike scene if the players chose to go with its competitor. With the votes in, the newly formed esports organization decided to follow through. Its CS:GO league was supposed to take place during the summers this year.
PEA may have promised its players better revenue packages but those were based on the teams playing exclusively for the organization’s very own CS:GO league. Had the exclusivity attempt gone through, it would have meant dire news for its competitors.
In the wake of today’s shuttering announcement, ESL has offered the teams extra compensation on the condition that they will appear in the ESL Pro League for the next two years.