"Harry said yes to doing this last year and everything was still moving forwards until a few weeks ago.
"This was going to be a big moment for Invictus where the pot is pretty empty, and it has left them in the lurch. Harry needs to pull his finger out to find another way to raise funds for them."
An Invictus spokesman said: "The event was shelved because the primary revenue generator was ticket sales from a live concert in Los Angeles in the spring of 2021.
"Given current circumstances with Covid, the event needed to be reconceptualised.
"This was an independent decision made prior to a partnership with Netflix. The duke remains committed as ever to the Invictus Games."
Meanwhile, it has been revealed that the Duke and Duchess of Sussex could rake in up to $150 million with their deal with Netflix.
Before signing with the streaming platform, Harry and Meghan held talks with Disney and Apple, the New York Times reports.
The Duke and Duchess of Sussex plan to make documentaries, films, and children's programmes in the new partnership.
This year's Invictus Games was postponed because of the pandemic. The duke described the decision as "incredibly difficult" but the "most sensible and safest option".
The 2020 games were due to be held in The Hague from May 9 to 16 and the competition is said to be rescheduled to May or June 2021.