ENCE Plans Bankruptcy Following 79% Revenue Decline Over Two Years

The board of ENCE eSports Oy has made the tough call to file for bankruptcy, marking the end of the Finnish organization’s 13-year journey, which saw its revenue peak at €6.3 million EUR ($7.1 million USD) just two years ago.

In a statement shared on X, the company expressed gratitude to its players, staff, partners, and fans, but did not provide specific reasons for the bankruptcy decision.

As of now, Finland’s trade register has not recorded any bankruptcy filing for the organization, and ENCE has yet to announce when or where it will submit the petition.

ENCE gained fame for its all-Finnish lineup in Counter-Strike: Global Offensive, notably reaching the finals of the IEM Katowice 2019 Major against Astralis. It also made headlines with StarCraft II player Joona “Serral” Sotala, who became the first non-Korean to win the WCS Global Finals while on the team in 2018.

The financial downturn is evident in the company’s reports.

According to financial data, ENCE eSports Oy experienced a staggering 79% drop in revenue from 2023 to 2025, plummeting to €1.32 million ($1.48 million). The operating loss for 2025 reached €993,210 ($1.11 million), which accounted for three-quarters of that year’s revenue.

This left little financial breathing room. Reports indicated that ENCE’s equity ratio stood at 56.6% by the end of 2025, with a balance sheet reduced to €536,056 ($599,739), suggesting an equity of around €303,000 ($339,000). At the rate of operating losses in 2025, this cushion would only last less than four months into 2026, and no financial statements for 2026 are available.

The decline unfolded in two phases.

The first phase began after the peak. In December 2023, ENCE sold its core roster, which had secured victory at IEM Dallas that year, to Team Falcons. ENCE reported that Falcons acquired AWPer Alvaro “SunPayus” Garcia’s contract after in-game leader Marco “Snappi” Pfeiffer had already signed with them, and Pavle “maden” Bošković followed suit when his contract expired. The financial details of the transfer were not disclosed, and it remains unclear how much of 2023’s record revenue stemmed from these transfer fees.

Performance dipped in 2024, with ENCE ranking 21st in ESL’s world standings in January, just outside the top-20 cutoff for partner invitations to IEM China and IEM Dallas, and failing to qualify for the 2024 Copenhagen Major. The team has not participated in a Major since Paris 2023. Prize money also saw a significant drop, falling from approximately $717,000 in 2023 to around $227,000 in 2024, according to results tracked by Liquipedia. Reports indicated a decline in sticker income as well.

The second phase of the decline was triggered by a rule change from Valve. In August 2023, Valve announced that starting in 2025, tournament organizers could no longer maintain exclusive business relationships with teams, meaning invitations would be based on Valve’s rankings or open qualifiers. This change effectively ended ESL’s Louvre Agreement, which had provided partner teams, including ENCE, with a permanent slot in the ESL Pro League and a share of league revenue. Estimates suggested this arrangement was worth hundreds of thousands of euros annually to ENCE.

Despite entering both 2024 Pro League seasons as a permanent partner team, 2025 marked the first year without that slot, leading to another 58% drop in revenue.

Under the new open system, invitations are determined by rankings. Reports indicated that ENCE has not participated in any top-tier events since September 2024, and its current lineup is ranked 103rd in Valve’s global standings. Teams outside the top 100 lack guaranteed access to events with the largest prize pools and visibility.

In March, ENCE attempted a reset. Following what it described as “a thorough strategic review” with company leadership and majority shareholders, it benched its international Counter-Strike 2 roster and coaching staff to refocus on Finnish players. The organization acknowledged the challenges of competing internationally and the impact on staff roles. Reports noted that ENCE promoted its Finnish academy lineup in April and appointed former player Aleksi “allu” Jalli as head coach in June.

In the same month, CEO Mika Kuusisto stepped down after over seven years in the role. He mentioned that the organization was undergoing significant restructuring to address recent financial challenges and that ENCE would not appoint a new CEO, opting instead for a flatter structure with three staff members overseeing content and marketing, partnerships, and esports. Kuusisto will remain on the board as a dedicated shareholder, with Petri Hämälä, the founder of ENCE, chairing the board.

This situation mirrors a recent trend in the Nordic region, as the Danish organization Copenhagen Flames filed for bankruptcy in 2023 after unsuccessful attempts to secure funding, despite having a profitable year in 2021.

Details regarding the timing and location of the bankruptcy petition, the estate administrator, the extent of ENCE’s liabilities, and the identities of its creditors remain unclear. Additionally, the future of contracts for players Teemu “teme” Korva, Aleksi “millert” Lehtopuu, Giorgi “Schwarz” Gakhokidze, Joe “joeski” Holmes, Henri “HENU” Ylilehto, and coach allu, as well as the ENCE brand itself, is uncertain.

ENCE enjoyed profitability for three consecutive years while achieving top-tier results and maintaining a guaranteed league slot, but it faced losses once those advantages were lost. The broader question now is whether a mid-tier Counter-Strike organization can sustain itself as a business without league revenue or a wealthy owner.