German esports organisation Sprout Esports has announced it has ceased operations.
On social media, the organisation noted that its existing business model ‘is no longer viable to ensure sustainable and healthy growth’.
As a result of the organisation ceasing operations, all of its players and members of staff have been released from their contracts. According to a statement, Sprout Esports looked at ‘alternative strategies’ before deciding to close its doors.
Founded in 2017, Sprout Esports fielded teams in Counter-Strike, PUBG Battlegrounds, Trackmania and sim racing. Over the last six years, the organisation achieved victory in six ESL Meisterschaft tournaments alongside appearances at the ELEAGUE Boston and IEM Rio CS:GO Majors. The organisation also supported amateur esports, fielding an Academy Counter-Strike roster to support the growth of upcoming talent.
The closure of Sprout Esports continues the trend of closures and widespread layoffs across the esports industry. In January 2024, Riot Games announced layoffs affecting 11% of its total workforce while UK-based esports organisation Vexed Gaming announced plans to close down.
Despite the organisation ceasing operations, Sprout Esports has revealed it will continue to support its sim racing division.
An excerpt of the statement reads: “One says ‘all good things must come to an end’ and here we are and as much as it aches our hearts to step aside.
“We are also making space for new seedlings, in hopes to leave behind fertile grounds where new sprouts can flourish. All operations will be ceased today except for the Simracing Team, which we continue to support in another way.”
