Denial Esports closing after CEO blasts his own players

TL;DR

  • Denial Esports collapsed twice due to chronic financial mismanagement and unpaid player salaries
  • Former CEO Zachary Smith’s explosive Twitter rant targeted players with personal attacks during closure announcement
  • The organization owed nearly $100,000 to Call of Duty team with payment chargebacks creating credibility crisis
  • Initial 2015 championship success was overshadowed by repeated payment scandals across multiple game titles
  • The case highlights critical importance of financial transparency in professional esports organizations

The esports world witnessed one of the most unprofessional organizational exits in recent memory when Denial Esports met its demise for the second time. The embattled organization’s closure was confirmed through a shocking social media outburst from its former CEO.

Zachary Smith didn’t merely announce the shutdown—he launched a scorched-earth Twitter tirade that targeted his own players and industry colleagues. This meltdown represented a complete breakdown of professional decorum that further damaged the organization’s already tarnished reputation.

“We began with ambitious goals to rebuild a damaged brand,” Smith stated in his controversial thread. “While addressing previous organizational failures, we unfortunately generated new crises… The closure doesn’t sadden me; I’m actually relieved to witness Denial’s end. This experience revealed the true nature of many individuals I considered friends.”

The attacks grew increasingly personal and specific. Smith publicly questioned the intelligence of Call of Duty competitor Ryan “ZeeK” Lapierre, made serious allegations against PUBG player Gavin “DefineLegit” Lawrence regarding international legal troubles, and accused defunct organization Overtime eSport of engaging in fraudulent trade practices.

In what many described as both bewildering and unprofessional, Smith concluded his announcement of Denial’s termination with the statement: “thank you to everyone and as always…go fuck yourself.”

Denial Esports launched in 2013 during the early growth phase of professional gaming. The organization strategically expanded across multiple competitive titles including Counter-Strike: Global Offensive and League of Legends, achieving their competitive peak in 2015 by securing the prestigious Call of Duty World Championship title.

The championship victory should have established Denial as an esports powerhouse. However, the organization soon began appearing in headlines for entirely different reasons—financial scandals and player compensation disputes.

Denial’s competitive Halo roster was among the first to publicly allege salary non-payment issues. These concerns were quickly echoed by organizational staff members, creating a pattern of financial instability that would plague the company for years.

Multiple individuals came forward claiming outstanding debts from the organization, leading to Denial’s initial closure in 2018 with significant financial obligations remaining unresolved.

The brand resurfaced in January under new ownership that promised to restore credibility. The leadership team pursued an aggressive expansion strategy across multiple gaming titles while simultaneously addressing previous financial grievances with players from earlier management regimes.

The recovery effort began unraveling earlier this month when Denial’s newly formed Call of Duty team revealed they were owed approximately $100,000 in unpaid salaries. Additional industry professionals stepped forward, with former players disclosing that payments they had received were subsequently charged back by the organization.

This created an overwhelming wave of negative publicity that ultimately forced Smith’s resignation and triggered the organization’s second collapse.

The Denial Esports saga provides critical lessons for emerging gaming organizations about sustainable business practices. Financial transparency remains the cornerstone of organizational credibility in an industry where player trust directly impacts competitive performance and brand value.

Common financial red flags that emerged in Denial’s case include delayed salary payments, inconsistent contract enforcement, and the ultimate warning sign—payment chargebacks to previously compensated players.

Successful esports organizations typically implement quarterly financial audits, maintain separate player compensation accounts, and establish clear escalation procedures for payment disputes. These measures help prevent the type of cascading credibility crisis that ultimately doomed Denial.

Player relations represent another crucial area for improvement. Professional communication standards, even during organizational crises, preserve brand integrity and maintain relationships within the competitive community. Public attacks on players and partners inevitably damage future business opportunities.

For organizations competing in titles like Battlefield 6 class systems, maintaining financial stability ensures consistent team performance and roster retention.

Smith indicated the organization is currently processing player releases and settling outstanding salary obligations. However, given the organization’s track record of financial instability, industry observers remain skeptical about whether these final payments will materialize.

The collapse offers valuable insights for players considering contracts with emerging organizations. Due diligence should include verifying payment histories, checking references from previous players, and understanding organizational financial structures before commitment.

Action Checklist

  • Verify payment history through player references and industry databases
  • Review organizational financial transparency policies and audit schedules
  • Analyze contract terms for clear payment schedules and dispute resolution procedures
  • Research organizational leadership history and industry reputation
  • Consult with experienced players about sustainable organization selection criteria

No reproduction without permission:Games Guides Website » Denial Esports closing after CEO blasts his own players The dramatic rise and fall of Denial Esports, from championship glory to financial collapse and CEO meltdown