The head of the Intel Extreme Masters, Michal "Carmac" Blicharz, issued a direct response to concerns about prize money issued by the Team Alternate player Carlo "ClouD" Giannacco.
Responding in like kind the diatribe about ESL paying out prize money (something that might come as a shock to many competitive players who have been waiting some time) the missive was posted on the Team Liquid Forums.
It reads:
1) Why doesn't prize money get paid out instantly?
[This paragraph is meant to explain the procedure.]
The three month period of waiting for prize money should be communicated more as an "up to three month period". There is paperwork involved in processing prize money - money is being paid out literally every week to dozens of players (ESL hosts a very large number of cups). If an event was held on German soil, then a prize money tax needs to be applied and paid out to the German government (the player pays that amount less of income tax at home).
The 90 days is there also because most companies (sponsors) pay in chunks on a quarterly basis (90 days). Companies (leagues) with venture capital to spend tend to not have this problem.
2) ESL owes prize money.
What Cloud wrote is true (at least as regards the ESL part). In total ESL owes 32,870 EUR and 400 USD to StarCraft II players. Intel Extreme Masters Global Challenges: Cologne, Guangzhou and New York have not been paid out yet, but they are within their 90 day period and are expected to be paid out on schedule.
ESL does pay out prize money. Actually, ESL pays out every week, though there is a delay for many tournaments. Over the years ESL has already paid out close to $10,000,000 in prize money (that's money paid out, not promised-and-unpaid) - I think that's more than anyone else in the industry. This is a pretty decent track record of having paid out money. The money comes eventually, which is why players still come and compete in ESL events.
The current situation is not excusable and the fact that he will get his money eventually is no good consolation to Cloud (or anyone else, for that matter). ESL is working hard to make sure this goes away. The issue is treated very seriously in this company – in spite of appearances threatening is not needed.
3) Miscellaneous issues.
a) Team Na'Vi for Counter-Strike (mentioned in Cloud's thread) is getting paid their outstanding winnings on a seperate agreement between them and ESL. There's also some outstanding money from the last Intel Extreme Masters World Championship (but not for StarCraft II) that will be paid out soon, so my tweet was only correct for SC2. I was unaware of it at the time.
b) ESL is not blameworthy every single time (not to take blame away or anything, but to shed more light on the issue). A team or participant registering for ESL tournaments normally specifies the recipient of prize money - it can be a person or a company ("pro gaming team"). It can happen that the team withholds it from the player(s) without them being aware of it. I was told about such an issue today, actually (you'd be surprised who…).
c) It happens that a team or player does not get paid out simply because they don't manage to provide ESL with a bank account to send the money to. Marginal cases.
d) The average prize money delay differs between individual tournaments, but it's not as bad as it's made out to be. Obviously it should not happen. People at ESL are aware of it and are working to make sure everything gets paid and that the delay in prize money goes away.
The CEO of the company was a pro gamer himself in one of the manliest of games ever made (next to BroodWar). He knows about the issue, he treats it seriously and he keeps telling me it will be fixed. A Lannister always pays his debts.
Whether or not this has done anything to alleviate the concerns of the players waiting for prize money isn't clear but the debate has made it into the e-sports media and the SC2 community seems to be addressing this problem for the first time.