YaLLa Esports, a United Arab Emirates-based tournament organizer known for its Counter-Strike series YaLLa Compass, is winding down operations amid significant financial difficulties detailed by a report by HLTV.

Founded in 2016, YaLLa shifted from running competitive teams to operating as a media agency and event organizer. The company hosted its first LAN event in June 2024 in Abu Dhabi with a $400,000 prize pool, won by MongolZ. In 2025, the company expanded Compass into a year-round tournament series with two LAN events and a total of $1.5 million in prize money. However, in August, YaLLa announced the cancellation of the circuit.

HLTV sources reported that YaLLa owes over $1 million in unpaid debts to employees, freelancers, teams, suppliers, and partners. Several teams, including MongolZ, Ninjas in Pyjamas, NAVI, BetBoom, Complexity, and others, have confirmed they have not received prize money owed from YaLLa Compass tournaments, with the total outstanding prize money estimated at around $700,000.

Freelancers and production companies involved in YaLLa events are also reported to be unpaid, with casters owed more than $35,000 and production crews like Germany’s ANATY Productions missing nearly $13,000.

Internally, YaLLa’s bankruptcy was announced during a company-wide meeting on July 18, 2025. Employees described ongoing cash flow problems, delayed salary payments, and limited communication from management. The company’s Founder, Klaus Kajetski, informed staff that YaLLa was filing for liquidation and that future communications would be handled by legal representatives. However, sources told HLTV there is uncertainty around whether proper insolvency procedures have been initiated.

According to the sources, YaLLa’s collapse was linked to mismanagement by Kajetski. The company depended heavily on acquiring sponsorship deals and upfront payments to fund its operations. When those funds were delayed or failed to materialize, YaLLa’s financial situation deteriorated rapidly, leading to unpaid debts and the eventual winding down of the business.

HLTV also learned that several former employees and partners have started legal actions to recover unpaid amounts, including Wadih Al Sayah, former co-owner of YaLLa’s esports division, who won a local court ruling in early 2025 for his severance claim.

YaLLa’s website has been taken down, and its social media accounts went inactive. As of August 2025, no further official updates have been provided by the company.