Fnatic CEO Sam Mathews has admitted that the organisation spent too much money in the past on its League of Legends (LoL) team, calling the model “unsustainable,” while highlighting VALORANT as a stronger and healthier business for the company.
In a recent interview with RFT.GG, Mathews said that during earlier years, especially around big-name signings like Luka “Perkz“ Perković, Fnatic spent millions on player salaries. He admitted that this level of spending “didn’t make economic sense” and led to losses, not just for Fnatic but across much of the esports industry.
Fnatic has now reduced how much it spends on its League of Legends roster. Instead of signing expensive star players, the team is focusing on younger talent and trying to build a squad for the long term.
Mathews said this approach comes with risks. Results may not be strong in the short term, and fans have already raised concerns, including complaints about limited coaching staff during some splits. Still, the organisation believes this is the right way forward.
Despite recent struggles and some fans suggesting Fnatic should sell its slot, Mathews made it clear the organisation is not leaving League of Legends. He said the game remains a core part of Fnatic’s identity, pointing to its long history, including 13 World Championship appearances. “We’re not going to leave League because we have a bad year,” he said.
While League has been difficult financially, Mathews said VALORANT has been a much healthier title for Fnatic. The organisation has seen strong results in the title, with better returns through prize money, sponsorships, and overall stability. Because of this, Fnatic is continuing to invest more in its VALORANT division.
Mathews explained that running teams in multiple games means making trade-offs. Fnatic is now trying to use its resources more carefully and move towards a sustainable business model. The company is reportedly close to breaking even as of late 2025 and has also focused on brand partnerships, including deals with companies like Red Bull and Skinrave.GG.
Separately, Fnatic’s Chief Gaming Officer Patrik “cArn” Sättermon recently said that the League team’s situation is “healthier than people from the outside might assume.” This suggests the organisation believes its rebuilding plan is working, even if results are not yet strong.
League of Legends remains one of the biggest esports in terms of viewership, but it is expensive to run a top team, and success is not guaranteed. As a result, more organisations, including Fnatic, are now focusing on cutting costs and building for long-term stability.
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