Red Reserve relaunch despite still owing former players thousands
Defunct esports organization Red Reserve has relaunched “under new management,” after the organization folded in April 2019. At the time, former players and staff claimed that they were owed hundreds of thousands of dollars.
On April 15, 2019, Red Reserve shut up shop and cited the “operating cost of the [Call of Duty] team due to the players’ high salary requirements” as a major factor.
Alongside competing in Call of Duty, Red Reserve previously had a content creation team and a team house, but this was also ended in May 2018 due to “rotting relationships.”
When the players were released, Rhys ‘Rated’ Price claimed that the organization still owed them $40,000 each in prize money. Many staff also lost their jobs, with some also claiming they were owed pay.
Red Reserve relaunch
The organization is officially relaunching on February 14, headed by a new management team with CEO Kim Alden at the helm.
They will first begin in mobile esports, but plan to “expand into all areas of esports.” They have acquired a PUBG mobile team, and will compete in the PUBGM PMCO Spring Split.
Red Reserve“We completely understand the reputation that comes with the name RR, we will build trust back and we will show how RR should operate,” The new CEO, Kim Alden, said. “We have reverted back to its original logo to symbolize a return to its more successful years.”
Former players not paid
There is no mention of reparations with former players and staff of the organization, however. “Red Reserve is such a well-known brand and it’s our desire to re-establish this brand and make it great again,” Alden also said.
Update, February 15, 6:46AM EST: Red Reserve has provided Dexerto with the following statement, when asked about the status of former players and staff:
“We are aware of the issues the old management created and we are shocked as anyone how they could treat players like that. The issue is that we are a brand new company under completely new management. RR has nothing to do with any of the old management or board members.
This question really needs to be asked to the right company that used to own RR. Moreover, all of the old contracts that the previous players had are with that company and we have never seen the details in those contracts.
That being said, if the former players want to talk to us directly they can; we have nothing to hide from them and we are as shocked about how they were treated as anybody.”
Regarding Red Reserve’s history and their decision to use the branding, management explained:
“Of course we know the chequered past of RR. We understand the backlash that the community will bring but we also understand that RR has a huge fan base that is also reaching out to us showing love and support. Not to mention there are many teams that are already asking to join us and play under RR. We love the RR brand and we want to bring back the time when it was regarded with respect. We are honouring this by reverting back to the old logo.”
Dexerto has reached out to a number of former players of Red Reserve, under previous management. Players have confirmed that they have received no payment, nor contact from the new management, at the time of writing.
The organization has relaunched new social media accounts, with the handle RedReserveLtd. Red Reserve’s former Twitter account, which boasts over 360,000 followers, is now controlled by esports organization Nordavind DNB.