Cancelation of 250K Nintendo tournament unveils possible foul play

Photo Courtesy of Unsplash

Photo Courtesy of Unsplash

Audrey Tartaglia

  After over a year of preparation, the Smash World Tour loses its rights to hold a tournament and the players lose the chance to win a cut of a 250,000 dollar prize pool.

   With a planned prize pool of over 250,000 dollars, the tournament was to become the biggest Super Smash Bros Tournament of the year in terms of prize money. 

   Smash World Tour (SWT) is an international tournament circuit that holds matches for Ultimate and Melee in Super Smash Bros from March to Dec. Players with the most accumulated points through match wins would be invited to the second annual Smash World Tour Championship, where they would compete for the title of World Champion.

   However, this tournament was shut down when SWT announced that on Nov. 23 Nintendo had told them they would no longer be able to operate the competition.

   “In 2022 alone, we connected over 6,400 live events worldwide, with over 325,000 in-person entrants, making the Smash World Tour (SWT, or the Tour) the largest esports tour in history, for any game title. The Championships would also have had the largest prize pool in Smash history at over $250,000. The 2023 Smash World Tour planned to have a prize pool of over $350,000,” the SWT team said in their official statement on their verified Twitter @SmashWorldTour.

   Another party involved was Panda Global and its CEO Dr. Alan. In the matches that led up to the SWT Championship, Alan had come into contact with the organizers and players of events hosted by SWT. According to SWT, he approached these organizers with claims that their events would be shut down permanently. However, when SWT contacted Nintendo, they claimed that the company reassured them that they were not at risk since they did not break game mod IP infringement. However, Nintendo was not exclusive to anyone which included Alan, and Nintendo doesn’t aim to restrict the community.

   According to SWT, they had started the application process for a license in late Jan. but delayed it due to ambiguity in the scope of their proposal. Without this license, they did not have explicit permission from Nintendo to create or host the tournament. While in the past actual legal conflicts due to lack of licenses were few and far in between, recently Nintendo has increased its involvement in tournaments through more severe and enforced licensing. 

   They officially submitted the proposal on April 9. According to SWT, after a long wait which Nintendo had said was in part due to their involvement with a separate event, both companies met again. The result of this conversation resulted in similar reassurances and apologies for Panda’s overreach and the slow license process.

   At the same time, Alan had started to reach out to popular tournament broadcaster, Beyond the Summit (BTS) to get exclusive broadcasting rights for events under Panda Cup. However, after he was rejected there was a conflict between Alan and BTS. David Gorman, the co-founder of BTS, spoke out about the situation.

   “Alan spent several months basically running a protection racket telling TOs [tournament organizers] including BTS ‘it’d be a shame if your event got shut down for being unlicensed’ in an effort to scare them into signing into the Cup. BTS will absolutely never participate in a circuit led by Alan,” Gorman said on his official Twitter account @LDeeep.

   This all came to a climax when a Nintendo representative told SWT on Nov. 23, that going forward the company could only operate with a commercial license and any championship or activity in 2023 would not be granted any license. 

   “It is with much regret that we announce that we must cancel both upcoming major VGBC Smash events: Glitch: Duel of Fates, and Double Down 2023,” VGBootCamp, the company behind SWT said in their official statement on Twitter @VGBootCamp.

   According to SWT, when asked for the reason for the decision, Nintendo did not provide any specifics that the company believed were deserved. In response to SWT’s proposal to continue their Championships and Tour in 2023 without a license with a mutual agreement they would not get shut down– a continuation of their activity in years past –Nintendo refused to agree.

   One day after SWT released its official statement, Nintendo released a statement.

   According to Kotaku, “Unfortunately after continuous conversations with Smash World Tour, and after giving the same deep consideration we apply to any potential partner, we were unable to come to an agreement with SWT for a full circuit in 2023. Nintendo did not request any changes to or cancellation of remaining events in 2022, including the 2022 Championship event, considering the negative impact on the players who were already planning to participate,” Nintendo said.

   Less than two hours later SWT made another response. Besides their reaffirmation that Nintendo had rejected their efforts to continue their Championships and Tour, they released additional information on Nintendo’s statement after the initial cancellation call.

   According to SWT, ‘It is Nintendo’s expectation that an approved license be secured in order to operate any commercial activity featuring Nintendo IP. It is also expected to secure such a license well in advance of any public announcement. After further review, we’ve found that the Smash World Tour has not met these expectations around health & safety guidelines and has not adhered to our internal partner guidelines. Nintendo will not be able to grant a license for the Smash World Tour Championship 2022 or any Smash World Tour activity in 2023,’” Nintendo said.

   On Dec. 2, Nintendo released a second statement. This statement includes their claim that their decision was purely based on SWT’s proposal and an assessment of SWT’s unlicensed activities. They said that their decision had no third-party influence and their license standards were high to ensure fan health and safety. Their license partners must meet these criteria and adhere to brand and IP guidelines with their best professional practices. Specifically, they acknowledged Panda Global as a ‘key partner’ and advocate for the Super Smash Bros Community.

   According to Kotaku, “When we notified the SWT that we would not license their 2022 or 2023 activities, we also let them know verbally that we were not requiring they cancel the 2022 finals event because of the impact it would have on players. Thus, the decision to cancel the SWT 2022 was, and still is, their own choice,” Nintendo said.

   In SWT’s second official response eight hours after Nintendo, they reiterate that they received very clear directions from Nintendo that they would no longer be able to operate their Championships in 2023. They also struggle to understand how Nintendo thought the timing of their contact with SWT and their emphasis on the need for a license would encourage them to continue their unlicensed tournament two weeks later. They said that all consequences due to cancellation were acknowledged and accepted by Nintendo and the overall ambiguity of Nintendo’s statement has confused many event organizers. They also express disappointment and concern over Nintendo’s supposed ‘key partner’, Panda, when the company was fully aware of the company’s actions.

   On the same day, Panda released its statement. It said that like Nintendo’s statement, they had no influence in the final decision toward the cancellation of SWT and found out about the decision at the same time as the public. They also make a statement regarding Alan’s interaction with BTS.

  According to their official Twitter @PandaGlobal,  “…the Panda Cup team does acknowledge and regret an interaction between Dr. Alan and Beyond the Summit, in which he spoke in a manner which did not reflect either guidance from Nintendo or our own standards,” Panda Global said. 

   They go on to state they will have a dedicated team assembled to manage Panda Cup activities and contact event runners to prevent future miscommunication.

   Three days later, on Dec. 5, another statement was released by Panda.

   According to Twitter @PandaGlobal, “Panda has heard the concerns of the Smash community and is taking immediate action. Alan is no longer CEO, effective immediately” Panda said. “Panda Cup Finale is postponed.”

   Alan also released his statement on Twitter on that same day. He claims that SWT lied and BTS leadership had put the community in jeopardy.

  According to Twitter @DrAlanB, “I’ve stepped down as CEO of Panda to protect the safety and well-being of the team. My statement (with evidence) is coming,” Alan said. 

   Alan has stepped down from his CEO position, although he does retain ownership of the company. The evidence he mentioned has not been released yet. 

   In terms of the postponement of the Panda Cup Finale, speculation is that this was caused by a large number of players and staff under Panda quitting due to the controversy.

   Zack Treharne also known as “Little Z” is an Australian Smash content creator with over one million subscribers on Youtube. Previously under Panda, he released a statement on Dec. 5.

   According to Trehane’s official Twitter @LittleZ, “I’m leaving Panda. I’m really grateful for all the opportunities they have provided me with, and have met so many wonderful people there. However, I do not agree with how they have responded to the current situation, and can no longer associate myself with their brand,” Treharne said. 

   Victor Woodley, also known as “punkdagod” to over 100k of his Twitch and Youtube followers, also released his statement on December 5.

   According to Woodley’s official Twitter @PunkDaGod, “I have come to the decision to leave @PandaGlobal. I appreciate everything they’ve done to help me grow and I hope that the team can still move forward in the future without me!” Woodley said. 

   Justin McGrath, also known as “Plup”, was one of the arguably best players on Panda’s roster. McGrath had won the title of Melee World Champion only a year earlier in SWT’s 2021 Smash World Championship. He released his statement on Dec. 3.

   According to McGrath’s official Twitter @Panda_Pulp, “I’m quitting Panda. I’ve truly enjoyed my time there, and they treated me well. I know that, at a certain point, they had the community’s best interests in mind. I just don’t think I can support them anymore,” McGrath said. 

  On Dec. 6, Alan released his statement on Twitter. In this statement, he wrote that it took a lot of time to write his statement due to constant death threats, doxing, and extreme harassment. Through his Twitter statement, he wrote about SWT, VGBootCamp, BTS, the accusations against him, and Nintendo.

   He said that he had first heard of SWT in 2020 and claimed that when Nintendo found out SWT was to be operated without a license they asked the company to wait for approval. He said that this request was ignored by SWT due to the lack of risk the parent company (VGBootCamp) had: either they don’t get shut down, they use social media backlash to protect their tournament, or they become a shutdown martyr for the community and are supported in their other events.

   According to Alan’s official Twitter @DrAlanB, “SWT Leadership had intimate knowledge that Nintendo was working on an officially licensed circuit with Panda months before launching. They were told to wait for approval but announced anyways, and knowingly did multiple things that has prevented Nintendo from issuing licenses to events before,” Alan said.

   He said that SWT was aware that the approval process for a license should take at least three years and their surprise at the inability to get the license within a year was strange and unjustified. He reiterates that Nintendo did not cancel the event and that it was an SWT choice. He goes on to say that SWT was prepared for the cancellation of their tournament and weaponized the community to support them.

   “The SWT leadership team stood to gain the most out of anyone by tarnishing Panda’s reputation and dragging the Panda Cup down,” Alan said.

   He also wrote about how BTS was not truthful in its statement. He said that he reached out to collaborate with the company, more specifically Ken Chen, former creative director at BTS. While in communications Alan claims while he wanted to cooperate with BTS, he was met with “stonewalling” by Chen. When legal action was brought to the table, Alan claims he tried to come to an agreement with Chen but again was met with rejection, this time with Chen “willing to jeopardize the entire Smash community.” He goes on to say that Chen, although no longer under BTS, continues to try to undermine Panda’s reputation.

   Alan also said that he did not pressure any team organizers (TOs) and that any claim by BTS was false. He submitted screenshots of interactions with TOs which include rejections and his aid to form a connection between the TOs and Nintendo.

   He ends with a statement about Panda’s relations with Nintendo. Alan said that there was no direct monetary exchange between Nintendo and Panda for the Panda Cup. He also said that Nintendo’s standards are high and there are a lot of legalities to process but the whole goal was to sustain full-time careers for the Smash community through major commercial activity while their identity is still protected.

     One hour later Ken Chen responded on his official Twitter @Hot_Bid with screenshots of a conversation between Alan and him that included a conversation on the legalities in regards to broadcast rights for tournaments. Chen wrote about clarification toward the gray area of tournament broadcast rights. Alan said that “it definitely could get rough in some situations,” in terms of broadcast rights and monetization. He also references the previous Panda Global official statement that apologized for Alan’s behavior toward BTS. Alan said that his statements were “telling the honest story of what happened.”

   SWT also released a response a few hours after Chen on their official Twitter. To the claims Alan made about the cancellation of the tournament, Alan said that SWT had not booked the hotel where the tournament was supposed to take place, but  SWT’s response showed the wire transfer details of the booked venue. They also released a screenshot of the Nintendo license email they had referenced in their earlier statements. 

   “Nintendo will not be able to grant a license for the Smash World Tour Championship 2022 or any Smash World Tour event in 2023,” Nintendo said in the screenshot released by SWT.

   SWT said that because of this email, they assumed that they would not be allowed to continue their SWT 2022 tournament.

   As of Dec. 7, public figures which include Genesis tournament organizer Boback and Battle of BC tournament organizer Galint Dhir spoke of their experiences that contradict Alan. Their statements on Twitter @Boback and  Twitter @reindhir respectively, both said that Alan had approached them with the notion that he would buy their event rights in their entirety.

   At the same time, Big House tournament organizer Robin Harn said that Panda was essential to the organization and operation of their tournament, and Tyler Martins, also known as Marss and a professional player in the industry, said that he will stay on Panda.

   Suffice it to say that the responses from Panda, SWT, BTS, and Alan have spread across the internet in a very public controversy. Since most of the information from all parties came from Twitter, the evidence turns to testimonies of any and all involved. Moreover, with both SWT and Panda’s future tournaments shrouded in ambiguity, the public waits for a clear verdict on both companies’ futures.

 

The Original Smash World Tour Statement (Nov. 29): Smash World Tour Official Statement | by Smash World Tour | Nov, 2022 | Medium

Nintendo’s Responses (Nov. 30/Dec. 2): Nintendo Shuts Down Smash World Tour ‘Without Any Warning’ (kotaku.com)

Smash World Tour First Response to Nintendo (Nov. 30): Smash World Tour Follow-Up – Google Docs

Smash World Tour Second Response to Nintendo (Dec. 2): Smash World Tour Follow-up #2 – Google Docs

Panda Global Statements (Dec. 2/Dec. 5): Twitter @PandaGlobal

Alan Statement (Dec. 5/Dec. 7): Twitter @DrAlanB

Smash World Tour Third Response to Alan’s Claims: Smash World Tour Follow-Up #3 – Google Docs

Mentioned Twtter Statement Accounts: Smash World Tour (@SmashWorldTour), VGBootCamp (@VGBootCamp), David Gorman (@LDeeep), Panda Global (@PandaGlobal), Alan Bunney (DrAlanB), Zack Treharne (@LittleZ), Victor Woodley (@PunkDaGod), Justin McGrath (@Panda_Pulp), Ken Chen (@Hot_Bid), Boback (@Boback), Galint Dhir (reindhir), Robin Harn (@JuggleRob), Marss (@Marss_NE)