Category: E-sport (page 1 of 1)

How do E-sports organizations make money? (Part 3)

Media copyright

20% of total E-sports revenue comes from media royalties. This money will go to game developers and tournament organizers.

For E-sports organizations that want to compete in franchised tournaments such as Overwatch League or LCS, the amount of money to “buy tickets” is huge. Not far away, the racial scandal caused Echo Fox President Rick Fox to sell his teeth to attend the LCS.

Just after the announcement, the Kroenke Group, famous for its stinginess when not investing in the Arsenal club, spent more than $ 30 million to “buy tickets” to attend the LCS tournament. Only then can you see how big brands and corporations around the world consider E-sports to be a fertile and fertile land.

Media copyright is second only to sponsorship in statistics generated by E-sports.

SellING ​​products, tickets to the tournament

With an income of about $ 100 million, too small for image rights or sponsorship, trading products and tickets in E-sports is not as successful as other traditional sports.

In E-sports, big stadiums are not an important consideration when organizing a tournament. So the money earned from ticket sales, modest product is obvious.

But the ticketing franchise to see the tournament for E-sports organizations is the reason why the Overwatch League is getting so big. Although the fee to attend this tournament is not small, the estimates of the number of viewers coming to the field to watch live in 2020 are worth investors’ consideration.

In addition to selling tickets, some E-sports organizations are now quite successful in selling the products they create. The best example is 100 Thieves, an organization that the talented League of Legends, Levi, used to work with.

Since being founded by Matthew “Nadeshot” Haag, 100 Thieves have earned a large amount of direct investment from outside. One of their biggest shareholders is Drake, a Canadian hip hop superstar.

The main reason Drake is interested in investing in 100 Thieves is that the organization, in addition to E-sports, is gradually becoming a famous fashion brand.

Above are the most popular ways e-sports organizations make money.

How huge is the revenue of E-sports?

Today, the world’s leading E-sports organizations call for tens of millions of dollars of successful capital to be normal. According to Forbes, some organizations are now worth more than 200 million USD. They receive huge investments from the outside, expected to earn even bigger amounts in the future.

However, what they do with the money to make profits and how much profit will fall into the range is still “secret”, very complicated and difficult to understand.

If you thought E-sports was making money from prizes from tournaments, you’re wrong.

So how are E-sports organizations investing tens of millions of dollars to make money? The answer is they don’t earn any money now, if you look at the annual income. E-sports organizations are currently operating based on investors’ future expectations. They try to expand the field of attendance, appearing everywhere in the world to spread their presence in the E-sports market.

The Cloud 9 organization is a prime example. They own 96 players, coaches, E-sports managers playing in 12 different subjects. That is why their October 2018 round of funding raised so quickly, bringing it up to $ 50 million.

Investors rated E-sports as “effectively” or “healthy” start-ups, meaning that the large sums of money they poured in would be definitely more profitable in the future. That makes them willing to sacrifice some initial profits to help organizations like Cloud 9 grow, moving forward in the long run.

But strangely, even without making a profit, the current E-sports organizations still have many other ways to make money.

According to Newzoo, the world’s leading E-sports financial analysis company, E-sports revenue has been growing strongly in recent times. 2019 marked the first milestone of $ 1 billion in history (up 26.7% compared to 2018), expected in 2020 it will rise to nearly $ 2 billion. According to Newzoo, the revenue of E-sports will reach 1,096 billion USD.

This huge number comes from “brand investment”, including media, advertising and sponsorship copyrights. The money will eventually go to the tournament, mostly. For example, the annual Overwatch League grossed $ 45 million because it premiered on the Twitch platform. But the E-sports organization will make a big profit.

HOW MUCH MONEY do the eSports players earn?

Through sponsorships, basic salaries, bonuses as well as live broadcast, e-sport players can earn money to make ends meet or even enrich themselves.

Although it has only been widely developed since 2000, players of professional electronic sports games can earn up to tens of thousands of dollars each month. So where does this money come from? Let’s learn some factors that affect the salary of professional players in the high-tech era.

Similar to any other sport, e-sports also needs to have a financial support sponsor so that players can focus on training and competition. Normally, big names in the field of video games (mouse, headset, seat, etc) will be sponsors for teams such as SteelSeries, Razer, ROCCAT, etc. However , sponsors will depend on the performance of each team or each member to pay or have the corresponding level of support.

According to Travis Hezel, SteelSeries global finance director, “Depending on the performance of each member, we will have different pay regimes, but of course make sure they are happy. First of all, the members are willing to invite cooperation, then we will work with the deal manager on some terms and funding for the whole team. ”

Basic salary

For LCS (League of Legends Championship Series), Riot Games will provide some money to help teams with operating costs. According to the 2014 Riot Games guidebook, players will be paid at least about $12,500 during the 28-game tournament of a season. However, there will be a lot of members receiving higher salaries.

According to the announcement of Jonathan Pan – Executive Director of the Ember team in North America, team members have the following salary:

Nicolar “Gleeb” Haddad – Total salary of about 72,500 USD.

Juan “Contractz” Garcia – The total salary is about 70,000 USD.

Greyson “Goldenglue” Gilmer – Total salary of about 92,000 USD.

Colin “Solo” Earnest – Total salary of about 86,000 USD.

Benjamin “Benjamin” DeMunck – Total salary of about 75,000 USD.