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Esport structures economy
ZywOo | 
France bjjthibz 
Hi guys, i've been asking myself how esport structure earn money ? I mean for example a big structure like G2, only csgo linup : salaries must be around 50k/month for the entire team (players, coach, manager) .. And obviously G2 is not winning 50k cashprizes turnaments every month. Another thing is that cashprize go to players, or does the structure get it ? I don't understand how e-sport structures work. Help me please.
2019-02-18 13:23
#1
 | 
Germany Krygaz 
They usually have a lot of sponsors
2019-02-18 13:24
#8
ZywOo | 
France bjjthibz 
Yeah i didn't even think about sponsors but do you really think it is enough to finance structures ?
2019-02-18 13:30
A lot of private investors as well. They see e-sports as the next big thing. Leagues like NBA/NFL make billions and those investors want to be there early when e-sports earns billions
2019-02-18 13:32
#12
ZywOo | 
France bjjthibz 
you must be right, idk what to think about that, because i like the way e-sport is growing it's getting bigger and bigger but at the same time it means more money involved More money means more problems.
2019-02-18 13:34
#27
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France TheArchitect 
Structure provides a proper working environment and work on all the logistic aspects (book flights, hotels, bootcamps/gaminghouse, PC, gear, etc ...) and obviously provides wages for the players and staff. On the other hand, the players bring exposure to the team (by going far in tournaments, winning trophies, being popular on social networks and medias, etc ...). Cash prizes are divided between the structure and the players in a rate decided in the contracts. The structure will use the exposure brought by the players to gather sponsors around it and sell advertisement. (main source of income for the structure)
2019-02-18 15:43
Sponsors is the biggest income by a mile in most cases
2019-02-18 15:48
Apparently the cash prize goes to the company.
2019-02-18 13:24
#9
ZywOo | 
France bjjthibz 
idk really i've heard both ways some people say players are sharing winning cashprizes, other people say structure get it.
2019-02-18 13:32
#20
 | 
Denmark kozality 
Any reputable organization would let at least 80% go to the players.
2019-02-18 14:22
If each player is on 20k$ each then where does the org get the money from?
2019-02-18 13:25
#19
 | 
Denmark kozality 
There's little to no money made being an organization in CS. Branding, sponsors and VC money of course makes a big difference, but the profit margins are very low. G2 has a huge brand and makes money off of other Esports and the funding is helping too.
2019-02-18 14:21
Betting. So far major orgs and sponsors haven't figured out a way to actually make money.. So for now it's betting and for the sake of esports it should change. Most likely pay per view in the future+access to footage and gossip
2019-02-18 13:26
#6
ZywOo | 
France bjjthibz 
it would be really annoying to have to pay to watch big events, but sadly if it embraces the classical sports yeah we will come to that ...
2019-02-18 13:29
#28
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France TheArchitect 
pay to watch = end of Esport. Remember Esport is mostly followed by people that can find an illegal stream of anything in less than 2 minutes. Also, most of us have the attention span of a clown fish so if it's too complicated or expensive to have access to the stream most of us will just do or watch something else.
2019-02-18 15:46
#30
ZywOo | 
France bjjthibz 
Hello my name is Dory
2019-02-18 15:50
#31
 | 
France TheArchitect 
Hello my name is Dory
2019-02-18 15:50
No poor sponsors dont make billions with hardware and stuff. lol
2019-02-18 13:36
Not all sponsors sell hardware borat
2019-02-18 15:35
No some sell stuff
2019-02-18 20:26
#5
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France Free_ZywOo_FFS 
Sponsoring + investors
2019-02-18 13:28
#16
ZywOo | 
France bjjthibz 
thanks edouard
2019-02-18 13:38
they throw games for proifit illuminati confirmed!
2019-02-18 13:30
Sponsors pay for advertisement / reduce taxes and turnover. Orga use the money to cover the expenses. Whats so hard to understand?
2019-02-18 13:34
#13
ZywOo | 
France bjjthibz 
1. in my original post i forgot sponsors 2. now that i have that in mind, i wonder if sponsors are paying so much because players salaries are high nowadays
2019-02-18 13:35
I dont know if they pay much and i dont know if you can give an absolute answer on that. But maybe the sponsors are just gettin bigger (like vodafone for mouz). I dont think players demands are a core reason, more the other way
2019-02-18 13:41
#21
 | 
Denmark kozality 
They have a ton of sponsors, especially the brand and shirt sponsors have to put down a lot of dough, especially for an organization on the scale of G2, Fnatic, Liquid and so forth. On top of that, a lot of VC money is coming in and really helping the infrastructure and wealth in the scene.
2019-02-18 14:25
#14
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Spain VIKTORAL 
90% sponsors 10%investors isnt that hard...
2019-02-18 13:36
Salaries (5 players+1 coach+1 dedicated manager) taxes, bootcamp facilities rental, side expenses (psychologist, team building stage, whatever). Between 1 and 3 millions a year on average for top 30 teams. Add the buy-in cost of players that may vary a lot. I believe if not all, at least 90% of cashprize goes to players. Few years back it was not the case, but today I'm convinced it is. So, other fundings : - buy out of their players - investors, losing money but expecting a return if the team or esport rise a lot (which is the case with esport industry growth of 45% last year. 45% is a fucking lot, pages.stern.nyu.edu/~adamodar/New_Home_P.. for comparison) - sponsorship (esport teams are very attractive as their audience is young and wealthy) - goodies sell
2019-02-18 13:52
#24
ZywOo | 
France bjjthibz 
thanks poto baguette that's quite a complete answer. T'assures.
2019-02-18 14:26
#22
 | 
France Paprii 
Even if they were earning 50k cashprize, depending of the contracts but 99% of the cashprize is going to the players, not the org. They earn money with sponsorship of brands, investor, goodies (t-shirt and so on), buy out of the players ect. ect.
2019-02-18 14:25
betting sites
2019-02-18 14:26
#25
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India otgps 
Right now, lot of investor money + sponsors. Some merch sales. In future when the investor stream runs dry, they will look for League system with passes, viewer passes of other kind or straight up being paid by TOs to attend their specific tournaments of TOs figure out a way to monetize their streams.
2019-02-18 14:28
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