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Fortnite World Cup Winners are being introduced into the harsh world of taxes

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For the teenagers competing in the Fortnite World Cup, filing taxes could have seemed like a foreign concept.

Even if players had to deal with some tax work from an odd job or a deal with an esports organization, having to pay back a significant amount of winnings can feel brutal.

When Bugha won the Fortnite World Cup he won a well-publicized prize of $3,000,000. But that prize falls under the American tax system’s highest tax bracket of 37%.

That means that every dollar he earned over 500,000 was taxed at 37%. Here’s a simple breakdown of American tax brackets, for simplicity sake we are going to say his entire prize was taxed at the top bracket. In reality, he will have about $30,000 extra after taxes.

After Uncle Sam collects, Bugha will be down to $1,890,000. A big drop, but not the worst thing in the world. But taxes aren’t done yet, because the tournament was held in New York, the richest state in the nation, they have one of the highest tax rates at 8.82%.

That takes off another $275,000. Now he’s down to $1,615,000. Hey at least it’s still over half. Fortnite World Cup runner-up Psalm was on Fox Business Network to talk about how he is dealing with the taxes that cut his $1.8 million to just over $900,000.

Fortnite World Cup Runner Up Psalm talked about taxes on Fox Business Network

But now lets go back to Bugha, because people arent done coming for his cash. Next up: Sentinels. Bugha was a relatively unknown player coming in to the event, he didn’t have any big finishes at the time of the signing and Sentinels signed him before he had even qualified for the Fortnite World Cup. So when signing a deal, Bugha was probably happy to trade a percentage of future prize winnings for a steady salary.

According to reports in the community, Bugha’s deal signs over 20% of his winnings to the organization. It isn’t clear if that percentage is taken out pre-tax or post-tax so we can calculate both.

Total winnings if Sentinels percentage comes pre-tax: $1,015,000

Total winnings is Sentinels percentage comes post-tax: $1,292,000

It’s a brutal wake-up call for the young star. even if you win the biggest individual prize pool in esports history, you still need to keep the government happy.

Esports

Clix signs with NRG Fortnite

NRG Signs Cody ‘Clix’ Conrod to their Fortnite roster.

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This past week, speculation has been swirling about where one of the hottest names in Fortnite will land. Cody ‘Clix’ Conrod has been teasing an organization announcement for the better part of the last fortnight (pun intended). He even trolled everyone with a “Joined FaZe Clan” tweet that fooled some members of the community.

On July 1, NRG announced that Clix would be the newest member of their Fortnite roster. The 15-year-old pro has already racked up hundreds of thousands of dollars playing Fortnite, qualifying for the World Cup a whopping five times.

This signing comes after the high-profile acquisition of fellow Fortnite pro, UnknownxArmy. NRG is clearly dedicated to the future of competitive Fortnite, with one of the most talented rosters in the game. Clix joins the likes of Zayt, Edgey, Unknown, EpicWhale, and BenjyFishy on the official NRG Fortnite roster.

The future is bright for this young pro, both in Fortnite and in gaming. NRG sured-up an already stacked Fortnite roster and looks to solidify their position at the top of Fortnite esports. Clix is completing a 24-hour stream for his organization announcement, which you can watch here.

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Patch Notes

Epic reduce Choppa spawn rates in competitive Fortnite

Epic are responding to one of the biggest problem in competitive Fortnite: helicopters.

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Epic seem to be taking the competitive Fortnite scene a lot more seriously in Fortnite Chapter 2. Chapter 1 was plagued with meddlesome items and vehicles like the Junk Rift, BRUTE, Baller, and X-4 Stormwing. In Chapter 2, they simplified the loot pool, added an “evaluation period” to new items, and made adjustments where they needed to.

Helicopters were left out of competitive modes in Fortnite Season 2. A lot of players wondered why that was – it seemed like a balanced vehicle. Well, in Chapter 2 Season 3, we saw the problem that Epic were avoiding.

Pro scrimmages and high-level Arena matches were immediately dominated by helicopters. You’d see four or more Choppas in the sky as the zones closed, all ignoring one another in pursuit of higher placements. It seemed like we were entering Baller and plane territory with the Choppa.

On June 26, Epic released a hotfix to Fortnite that reduced the spawn rate of helicopters in competitive modes. This might not eliminate the problem, but it will lower the frequency of the issue.

The one question that we have is: are these helicopter spawn locations static or did Epic nerf the spawn rate, only. If the latter is true, then players will have to roll the dice with their drop spot. The Authority may or may not have a helicopter, for instance.

While this hotfix might be a bandaid on a bigger issue, it shows that Epic are listening to their competitive community and taking action when they need to. It’s a far cry from Season X where they left the BRUTE in competitive modes, unchecked, for weeks.

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Esports

Epic Games respond to claims that they failed to pay Fortnite pros

Epic Games has contacted us with an official response to claims that they failed to pay some Fortnite pro players.

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Yesterday, we covered a story about pro players and content creators calling out Epic Games for failing to pay them their tournament winnings and Support-A-Creator earnings. You can take a look at the original story here.

On June 25, Epic Games reached out to us with a statement on the issue, clarifying why some of the prize money and Creator Code earnings have been held up. Below is the official statement from Epic Games on the matter.

Via: Epic Games

Epic Games’ official response to FortniteINTEL

“Recently, we experienced delays to Competitive prizes due to two separate issues. The first issue was related to our DreamHack Anaheim event. Here, we encountered delays due to additional California state tax withholding that required manual processing of payments outside of our Hyperwallet payment system. All prizes for DreamHack Anaheim have been sent directly to player bank accounts. These prizes should be deposited in the respective winners accounts in the next few days. We apologize for the delay.

The second issue was related to overpayments for some prize winners of online cups due to a clerical error and required manual correction. Now that we have sorted out the overpayment issues, we are back on track to process prizes in a more timely manner.

Regarding Support-A-Creator payouts, there are two issues at play. The first relates to us running into obstacles as we transition to a new payment system, including bugs and delays. We appreciate Creators who have been patient as we make this transition and resolve those issues. Creators who are encountering issues should watch our Hyperwallet Account Activation tutorial or reach out to Support-A-Creator Player Support for assistance.

The second issue involves creators who have violated the terms of the Support-A-Creator program by scamming or defrauding players. Typically these individuals create social media material that falsely promises special benefits to players relating to a specific Support-A-Creator code. The players use the code but never receive the special benefits they were promised. When these accounts are detected or reported, we remove these creators from the program and do not pay out their fraudulent accounts. We take these violations seriously, and are looking at additional measures to prevent bad actors from abusing the program, up to and including potential legal action.”

There should be a more detailed blog post from Epic Games on the topic within the hour, giving more information on all of these issues. We’ll keep you updated as this story develops.

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