Cybersport and business. What owners of eSports teams make money on
Bogdan LashchenkoCybersport is becoming more and more profitable every year. And it is not surprising. After all, computer games were originally developed in order to make money from them. But over time, it has learned to make money on it and еѕроrtѕive organisations, as well as their owners.
Tournaments for some types of computer games have become more popular than many traditional sports. For example, you can bet at parimatch.kz on a dozen different esports disciplines, and the line includes not only the majors, but also lower level competitions. Now there are more than 1000 registered Esports teams. And all these teams exist thanks to the profit they make. Let's take a look at what the teams and their owners earn from.
Prize money
One of the main sources of income for successful teams is prize money. This is especially true for organisations participating in the majors of Counter-Strike (CS:GO) and Dota 2, where the tournament bank can amount to millions of dollars.
But not all tournaments are paid that high. So unless a team wins regularly, or ranks high at the majors, the prize money doesn't even cover the costs. But tournament fees are far from being the only source of earnings for tournament organisations.
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Advertising and sponsorship
One of the main sources of income in еѕроrtѕе is advertising and sponsorship. There are full team sponsorships or partial sponsorships where organisations are contracted to receive a percentage of sales or similar deals. When watching streams of major tournaments, it is easy to see on the players' uniforms or other elements logos of different brands, mostly related to computers, technology, and sometimes companies with other lines of business. Often bookmakers are sponsors of teams. For example, BC Parimatch has long been a partner of the NAVI betting organisation.
Streaming
Like betting on sports, in еѕроrtѕе betting tіrе also often prefer to do in live. In this case, it is not difficult to run a broadcast of the game and analyse the match live. But the viewing audience consists not only of betting fans. Some games are watched by hundreds of thousands of fans.
Cybersports organisations make money from streaming. But you need to realise that the income from viewing is relatively small. Often the profit does not even cover the costs of video editing and players' salaries. Streaming was the main source of income from 2010 to 2016. Nowadays, teams receive more for advertising from sponsors for having their logo or product broadcast on air.
How else to make money in esports
Big brands are increasingly starting to invest in esports as this trend is growing rapidly. Therefore, direct investment is gradually ѕtupnоnе one of the main sources of revenue for teams. In addition, organisations sell their own merchandise, which also adds money to the piggy bank.
Bogdan Lashchenko – content manager at EgamersWorld.Bogdan has been working at EGamersWorld since 2023. Joining the company, he began fillin the site with information, news and events.