Two esports companies received upward of $2.1 million in PPP loans. Should they have?

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Analysis: Two esports companies received upward of $2.1 million in PPP loans. Should they have?

By its own metrics, Super League Gaming has thrived in the conditions created by the pandemic. Across key indicators — including registered users and engagement hours — the company, which runs a platform for organizing amateur esports tournaments, was performing remarkably well. “Gaming has proven itself to be fairly recession-proof,” pronounced Ann Hand, the company’s CEO, in a March 12 earnings call.

On April 23, the Treasury published an additional instruction that read, in part: “It is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith.” Both Super League Gaming and Allied Esports are publicly traded. However, whether a company has “substantial market value” and “adequate sources of liquidity,” another qualification in the document, is open to interpretation.

The Treasury has issued safe harbor deadlines — dates by which companies can return the loans, no questions asked. Thus far, the deadline has been repeatedly pushed back and now stands as May 18.

 

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Stupid&Grift a.k.a. the state of our one-party, two-faction political system. They could have listened to Bernie and sent $2K/person/m. Transparent, simple, fast but no grift. Where would be the grifting fun in that when Stupid&Grift can pick winners and losers at will.

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