CSPPA contemplating half-million-dollar FLASHPOINT lawsuit
The beleaguered CS:GO and one-time VALORANT tournament operator is now facing some potential league issues according to a report from Vakarm. According to the French website, the Counter-Strike Professional Players Association is contemplating a lawsuit over alleged unpaid compensation for players of partner teams for 2020. Players from the partner teams c0ntact, Cloud9, Dignitas, Envy, Gen.G, MAD Lions, MIBR, and FPX are due $457,500 in base compensation for 2020 as part of an agreement between the CSPPA and FLASHPOINT.
Revenue sharing agreements are not uncommon in the CS:GO landscape, with the CSPPA also agreeing to terms with ESL, BLAST, and Dreamhack over specific minimums in recent years. Part of the revenue sharing covers various revenue streams like broadcasting rights, sponsorships, and ticket revenue. FLASHPOINT appeared to be the first tournament operator to guarantee minimum compensation in addition to an annual percentage payment of net revenues.
FLASHPOINT and the CSPPA have not had the greatest relationship in recent years, especially with the tournament operator allegedly withholding a $165,000 payment due to disputes regarding a failed monitor sponsorship, among other issues. FLASHPOINT had agreed to pay that amount in exchange for a license agreement to use the player's intellectual property rights. The CSPPA alleges that it is improper for FLASHPOINT to withhold the payment for other allegations as it is not relevant to the usage of the IP right license.
Dust2.us reached out to former CSPPA advisor Scott "SirScoots" Smith to get his thoughts in regards to the potential lawsuit filed by the players.
If the players have decided to take legal action for the breach of contract of what is owed to them and their PA, that is encouraging news. Setting legal precedent around PA collective rights ownership is due to happen sooner or later in the industry.
This lawsuit would be just another chapter in the saga of FLASHPOINT, but it is also an encouraging sign that the CSPPA still is alive considering their near dormant appearance on social media and in various scandals relating to the coaching bug suspensions that we've seen in the last two years. Of note, the CSPPA ranking has not been updated since August 2021 and still has Gambit as the highest-rated team.
Vakarm reports that the CSPPA is gathering the signatures of all the participants of the first two editions of FLASHPOINT in order to proceed with the lawsuit against B Site and FLASHPOINT. Contact between FLASHPOINT and the CSPPA is "totally broken" at this stage.