Esports Entertainment Group COO and CFO resigns

Esports Entertainment Group (EEG) has announced the resignation of Damian Mathews from his dual roles as Chief Operating Officer and Chief Financial Officer, marking a significant leadership shift within the organization.

Notably, Mathews will continue to influence the company’s strategic direction as a board director.

EEG clarified that Mathews’ departure was amicable, with no disagreements surrounding his exit.

In light of this leadership change, Michael Villani has been appointed as the interim Chief Financial Officer. Villani, who has been with EEG since February 2021 as the financial controller, brings a wealth of experience from his previous role as a director in the deal advisory practice at KPMG.

He will continue to manage his responsibilities as financial controller while also serving as the company’s principal financial officer. With an 18-year tenure at KPMG spanning both the deal advisory and audit departments, Villani previously held the position of Chief Financial Officer at a hedge fund based in Geneva, further bolstering his credentials.

Current Challenges Faced by Esports Entertainment Group

Mathews’ resignation follows a tumultuous period for EEG, marked by the departure of former CEO Grant Johnson in late 2022. Over recent years, the company has confronted significant challenges, including brand closures, a debt default, and considerable operating losses.

In a quarterly financial report released in May of the previous year, EEG acknowledged “substantial doubt” regarding its ability to continue as a going concern for the next twelve months. This candid assessment underscores the financial strains the organization is currently navigating.

EEG managed to avert delisting from the Nasdaq exchange in December 2022; however, it has been tasked with substantially increasing its share price to remain compliant. Unfortunately, since that communication, the operator’s share price has continued to decline, raising further concerns among investors.

In response to these challenges, the company has strategically decided to scale back its iGaming operations and is actively exploring the sale of certain iGaming assets. EEG has already confirmed the closure of its Argyll iGaming operations, which included RedZone and SportNation, in the UK and Ireland. This consolidation was attributed to prohibitive operational costs and persistent challenges in achieving profitability.

Additionally, EEG previously announced plans for the sale of its online casino business in Spain, with expectations for finalization by December 12, 2022. However, no recent updates have been provided on the progress of this transaction. The proceeds from this sale are intended primarily to reduce outstanding principal on a senior convertible note.

In a new leadership chapter, it was announced on January 3 of this year that Alex Igleman would take the reins as the new CEO, signaling a potential shift in strategic direction for EEG.

As the gambling industry evolves, Esports Entertainment Group remains a focal point, reflecting larger trends and the rigorous challenges operators face in an increasingly competitive landscape.