Introduction: The S16 season has officially begun, and it's believed that the vast majority of players have been paying attention to the recent battles, with the LPL region hosting very fierce contests. As a well-known veteran team, EDG hasn't acquired top-tier players during recent transfer windows, leading to a sharp decline in their performance, quickly becoming one of the lowest-ranked teams in the league. Although they recalled their head coach, Factory, this transfer window, the overall impact has been minimal. Facing the similarly bottom-ranked WE team, they were swiftly swept. After the match, EDG was exposed for serious issues, with their affiliated company fined by authorities for tax evasion. Netizens joked: Factory must be shocked now, having just returned and already facing such problems.

EDG company fined for tax evasion

Most players are quite familiar with the EDG team, considered one of the founding champions of the LPL. Back when Factory was still playing professionally, EDG’s performance was outstanding, even earning the nickname "National Power." Over the years, as the league developed, EDG's investment gradually declined, and their results worsened. Their last peak was probably when they signed the AD player Uzi. This season, amid a tough esports environment, they had to abandon rebuilding their roster, fielding mostly rookies. Although Factory was brought back as head coach, it made no noticeable difference.

The match against WE became a hot topic among fans, as both teams are long-established LPL powerhouses with sizable fan bases. In this encounter, the also bottom-ranked WE team easily swept EDG 2-0, leaving no chance for EDG and clearly showing the gap between the two squads. After the match, EDG fans gave up hope, having expected at least one or two exciting games, but instead saw a complete collapse right from the first match. Following the game, news broke that sparked widespread discussion online, revealing serious problems within EDG.

According to official announcements, Shanghai Yangchuan Electronics Technology Co., Ltd., affiliated with EDG, was penalized for tax evasion by overstating expenses in their accounting records, resulting in a fine of 53,890.93 yuan. This tax evasion has been confirmed, with the fine publicly disclosed. It’s surprising that such a high-profile esports club would face such a serious issue. Judging by the fine amount, the evaded tax wasn’t very large—possibly equivalent to a single player's monthly bonus, as previously hinted by Meiko. Could such a large club really risk so much for such a small sum?

So far, the EDG club has not issued any official response, given that this company is linked to their esports operations. Honestly, it seems this problem might not be unique to EDG; many other clubs might have similar issues. Hopefully, this serves as a warning to all major esports organizations. Fortunately, the current handling of such matters isn’t very strict, especially within esports, where compliance with official penalties suffices. In contrast, if this happened in the entertainment industry, it would likely result in a complete ban with little chance of return. Currently, the only absolute taboo in esports is match-fixing.

Farewell Thoughts

It’s unexpected that a veteran club like EDG would be involved in tax evasion. Their company should be mature with stringent internal management. EDG is among the few LPL teams holding themselves to high standards and strict requirements. Hopefully, they will properly rectify these club issues and avoid disappointing their fans again. Poor performance is tolerable, but a bad attitude is not.

What do all of you viewers think about this matter?