The financial backers behind the controversial Enhanced Games – including Donald Trump Jr and Peter Thiel – are facing a brutal fallout from their inaugural event.Back in May, the Games – which became better known as the ‘Doping Olympics’ – invited a roster of athletes to Las Vegas to compete in an Olympic-style competition, where they were actively encouraged to take performance-enhancing drugs.The event itself, despite the glitz and glamor of the Vegas Strip, fell flat from a sporting perspective after founders promised a handful of world records would be broken. In the end, only one was bested and that came in the final event of the day. Three months on from the underwhelming event, the Games’ parent company have revealed that they have posted a net loss of $61.9million on revenue of $17.7million.According to Front Office Sports, the Enhanced Group attribute the loss to their inaugural Las Vegas event, along with costs associated with its company merger. In a press release, the results ‘reflect an intentional decision to invest heavily in its inaugural Enhanced Games, as the foundational platform for its sports business and as a customer acquisition engine for its performance medicine platform’. The inaugural Enhanced Games proved divisive once the dust had settled in Las Vegas Donald Trump Jr was among the backers for the Games’ controversial inaugural eventThe eye-watering shortfall is more than double the roughly $30 million lost by the UFC during its high-profile show at the White House in June.While the two figures are not directly comparable, the comparison highlights the immense financial strain of getting the unsanctioned sporting spectacle off the ground.Backed by Donald Trump Jr.’s investment firm, 1789 Capital, and Thiel, the Enhanced Games were pitched as a revolutionary athletic competition that permitted performance-enhancing drugs under medical supervision.However, the debut event held at Resorts World Las Vegas failed to offset its massive production costs.The huge hit has now forced company executives to signal a dramatic shift in their future business model.In a filing with the U.S. Securities and Exchange Commission, the company acknowledged that its ability to deliver successful events remains the ‘most significant near-term determinant of future performance.’To mitigate future losses, Enhanced Group revealed plans to pivot away from large-scale stadium events.Instead, they will shift toward smaller, less costly exhibitions dubbed ‘Enhanced Breakers,’ where individual athletes will attempt to break world records in more intimate settings. Enhanced Games CEO Maximilian Martin stands alongside Greek swimmer Kristian Gkolomeev Gkolomeev was the only one to break a world record, doing so in the men’s 50m freestyleThe business is also redirecting resources toward selling performance supplements, expanding its direct-to-consumer platform, and growing its telehealth division to generate consistent revenue.The severe financial hit follows a disastrous run on Wall Street after Enhanced Group went public via a SPAC merger in May, which initially valued the business at $1.2 billion.Since going public, the company’s stock has plummeted nearly 84 percent year-to-date, trading at just $1.68 per share as investor confidence continues to evaporate.The commercial slump mirrors the intense backlash the event faced prior to launch.