Earlier, we reported that tournament organizer YaLLa Esports had begun bankruptcy proceedings. Now, HLTV has published an in-depth report detailing the causes of the company’s financial collapse and the timeline of events. Despite plans for events in Dubai in November 2025 and three more tournaments in 2026, the YaLLa Compass series is being shut down, with debts to employees, teams, and partners exceeding $1 million.
Financial troubles and internal collapse
According to former employees, YaLLa had been dealing with cash flow gaps for years, leading to salary delays of a month or more. In May and June 2025, payments stopped entirely. On July 18, during an internal online meeting, CEO Klaus Kajetski announced the bankruptcy, avoiding specific answers on debt repayment. One former executive is suing the company for more than $270,000.
Unpaid prize money
HLTV estimates the total unpaid prize money from eight YaLLa Compass tournaments at around $700,000. Among those affected are The MongolZ, Ninjas in Pyjamas, NAVI Junior, BetBoom, Complexity, ENCE, ECLOT, Partizan, Nemiga, and others. The MongolZ, winners of the 2024 Abu Dhabi LAN finals, have yet to receive the promised $200,000, while players from the former Honor of Kings roster are still waiting for their share of a $250,000 prize pool from 2023.
Debts to talent and contractors
The issues have also affected the media segment. Casters and other talent who worked on online tournaments are owed more than $35,000. Production companies, including NGES and ANATY Productions, have outstanding invoices, while some freelancers lost thousands of dollars in personal expenses related to their work. One newly hired manager, brought on in May, accumulated $34,000 in unpaid salary over two months and spent $25,000 relocating to Dubai.
The Qatar failure and partner backlash
The cancellation of the Compass Qatar LAN finals in April 2025 proved to be a turning point. The event was moved online, the prize pool was reduced, and the organizers agreed to refund $160,000 of the sponsorship fee to 1xBet. Partners, including BetBoom, cited unmet obligations and a loss of trust. One former employee believes YaLLa built its business on advances from future tournaments, hoping new sponsors would cover old debts.
Reputation collapse and the future
Despite ambitions to bid for Majors in 2027–2028, the company did not secure any slots. Former employees doubt the liquidation process will be transparent and expect they will never see their money. Industry insiders fear the incident will deter potential sponsors and further bind esports to betting companies.
Source: hltv.org
