SportsGamer

SportsGamer Update – Current Situation and Next Steps Dear community, As previously communicated, SportsGamer has faced significant financial challenges over the past few years. Despite these difficulties, we remain committed to meeting our obligations to our players, contributors, and the wider community — and to ensuring the ECL’s continued future. Prize Payment Plan We have established a payment plan to settle the delayed ECL ’25: Winter and ECL ’25: Spring prize payouts in four installments: October 30: 50% of ECL ’25: Winter prizes November 14: remaining 50% of ECL ’25: Winter prizes December 15: 50% of ECL ’25: Spring prizes December 30: remaining 50% of ECL ’25: Spring prizes The first installment will be processed at the end of October, and we are committed to following this schedule in full. Players and teams with pending payments are being contacted directly to confirm details. We appreciate everyone’s patience and understanding as we complete this process in full transparency. We are also in contact with our long-time contributors and partners to address outstanding matters and keep everyone who has supported SportsGamer’s operations informed. For any ECL ‘25: Spring winners wondering: It is possible to use your prize money to purchase an ECL ‘26: Winter license already in November, even if the payments are scheduled to take place in December. ECL ’26 Season Schedule and Pre-Season Tournament Next week, we will announce the ECL ’26: Winter season schedule and open registration. However, license fee collection will not begin until after November 16. Before the new season officially begins, we will also host a free ECL Pre-Season tournament, open to all players and teams. The goal is to give everyone the opportunity to play, reconnect with the community, and enjoy competitive games without any entry fees. Prize Pool Structure and Transparency For the ECL ’26 Winter season, at least 35% of net license-fee income (after VAT and transaction fees) will be paid out as prize money. The remaining funds will cover operational and production costs and support the continued stabilization of our operations. The initial prize pool estimate will be published before the start of the season, based on confirmed registrations at that time. If additional licenses are purchased during the season, the final prize pool will be adjusted accordingly and disclosed once all registrations are complete. For players with full-year licenses, their contribution will be divided evenly between the Winter and Spring seasons. To maintain transparency, we will share the total net license income with the community after each season. Addressing Community Concerns SportsGamer operates in full compliance with Finnish corporate law. The 2023 financial statement has been completed and will be officially filed once the review and approval process is finalized, while the 2024 financial statement is currently being prepared. Accounting and auditing are managed by an independent accounting firm and a certified auditor. No shareholder has taken any profit or withdrawal from the company at any point. Kenneth Lehtinen received a salary for his operational work until December 2024. The company has operated at a loss throughout its history, funded by shareholder investments. The company is also pursuing opportunities to strengthen its financial position and secure the long-term future of the ECL. Summary Our goal is to rebuild trust through concrete actions. SportsGamer was founded on passion and community spirit, and we want to ensure that future ECL seasons continue delivering a high-quality and sustainable competitive experience for all players. Thank you to everyone who has continued to engage with us and share constructive feedback as we work to move forward together. – SportsGamer Leadership Team

We want to thank everyone for the constructive feedback and the strong engagement in the recent discussions and survey. We’re carefully reviewing your input internally, and we’re pleased to confirm that the ECL will continue. We remain fully committed to meeting our obligations and to delivering the same level of passion and dedication that this community has shown throughout the years. A more detailed update about the ECL and our next steps will be shared within the next couple of days. We truly value the open dialogue that has taken place. Constructive discussion — grounded in facts and mutual respect — helps us move forward together. We hear your concerns and understand the frustration — our priority is to communicate clearly and ensure that the next steps are built on trust and stability. — The SportsGamer Team

Dear players, We just sent this by email to all ECL ’25 players, but wanted to share it here as well so everyone can see the full update. Our Journey and the Current Challenge Over the past decade, the ECL and the SportsGamer community have grown from a small group of passionate players into one of the world’s leading competitive NHL communities. We’ve shared unforgettable seasons, built friendships across borders, and created something truly special together. Today, we need to talk openly about challenges that now threaten the sustainability of that work — and what we can do together to secure its future. SportsGamer’s leadership team recently met to address the company’s financial situation and ongoing cash-flow challenges. While day-to-day operations are managed internally by Kenneth Lehtinen, financial and strategic decisions are made collectively by the company’s shareholders. What’s Affecting SportsGamer and the ECL Over the past three years, SportsGamer has faced a difficult operating environment, and unfortunately, our business has not been profitable. The overall cost of running events and maintaining operations has increased, while revenue opportunities — particularly sponsorships and streaming support — have decreased. One of the main challenges to the profitability of the ECL has been a tax ruling regarding the VAT rate applied to player licenses. VAT, or value-added tax, is a government sales tax added on top of the license fee that we are required to collect and pay to the Finnish Tax Administration. For several years, player licenses were invoiced at a 10% VAT rate, based on earlier guidance from the Finnish Tax Administration. Following a later decision that reclassified the licenses under a higher rate, SportsGamer has been required to apply 24–25.5% VAT, which has significantly increased our costs and placed a heavy strain on our finances. In practice, this means that of the total amount paid for licenses, roughly 20% goes to taxes, about 50% to prize payments, and around 30% to operational costs. In addition, a weakened market and the continued difficulty of securing sponsorships have further contributed to the situation. The streaming landscape has also changed significantly. Our long-standing cooperation with Twitch, which previously provided strong support for the ECL broadcasts, has shifted in recent years. Overall viewership across NHL content has also declined. These changes have made it more challenging to attract partners around our broadcasts, and we are now exploring alternative ways to deliver value for potential sponsors and the community alike. What We’re Doing About It Despite these challenges, the leadership team has decided to continue operations, with the goal of bringing all financial obligations up to date — including the delayed ECL prize payments. Several cost-saving measures and internal restructurings have already been implemented, which have unfortunately affected the resources available. These measures include ending COO Kenneth Lehtinen’s employment. Since then, he has continued to support operations voluntarily. No payments have been made to him since December 2024, and the company’s other shareholders have not received any salaries or compensation at any point during SportsGamer’s operations. We recognize the frustration that delays can cause, and we believe that open communication about our situation is the most responsible path forward. We are personally reaching out to all parties with pending payments to provide updates and agree on next steps. The company is also seeking external funding to help stabilize operations and ensure continuity. How You Can Help Shape the Future To ensure the long-term sustainability of both SportsGamer and the ECL, we must explore all possible savings. The most significant immediate potential adjustment lies in the size of future prize pools. We kindly ask you to share your thoughts by completing the short survey below. In particular, we want to know whether you would continue to participate in the ECL if license fees remain the same but prize pools are reduced for the 2026 seasons, as well as which elements of the ECL you value the most. 👉 [Click here to access the survey] We’ll begin reviewing the feedback after 5 days of submissions, so we encourage you to share your thoughts by then if possible. Your feedback will play a crucial role in shaping the future of the ECL and determining whether it can continue to operate in its current form. We also welcome members of the community who wish to contribute their time or skills toward supporting future seasons. If you’re interested in volunteering, please reach out to us — every bit of help can make a difference as we work to stabilize and strengthen the ECL for the future. Thank you for your understanding, honesty, and continued support. Sincerely, SportsGamer Leadership Team