Why is esports a thing?

#26

gamergirl

Frags

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they were not during covid because they had to keep playing players, and stadiums were closed? clubs had an obligation to continue OPERATING as if they were generating money, which they werent for a long time

TV rights trickle down to teams, when the prem signs a tv rights deal all teams profit off of it.

2011 was 14 years ago? recently how? we are in a completely different era and streaming/tv rights are bigger than ever

https://www.fcbarcelona.com/en/club/news/3703615/fc-barcelona-announces-after-tax-net-profit-of-304-million-euros-in-202223

barca off of some of the worst financial years they have ever had recording profits of 300 million, madrid is probably higher too lol just no reason to act like sports are not profitable

#28

kaninv

Frags

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with better figures than expected, while also reducing the net debt for the second year in a row

they are still in debt. also, this is their best income by a large margin, it's a record breaking year and yes they are profitable now but they have not been for a long long time and if there is any downturn in football they will immediately be back in the red. this is barca and madrid. those teams are the best. what about every other team? they are probably not making profit lol. it's not just about the top teams, which I have said already by saying "generally" not profitable not "always" not profitable. on top of that, I also said that earlier.
sure, they CAN be profitable. but any team can be, there are orgs in esports that are already profitable. it's just either the top top ones, or ones that are selling players often that they scout.

#29

gamergirl

Frags

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you said traditional sports are funded by governments you're just a mong

put down the argument you lost there

gave you two examples of clubs that are owned by absolutely nobody, barca and real have 0 owners to give them cash injections and are profitable in the hundreds of millions, they took debt again because of covid as much of the world did

#31

kaninv

Frags

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traditional sports are funded by taxes, the stadiums for local teams are built by the governments which are funded by taxes not by the teams most of the time.
by the way, you are right, they are owned by nobody. the management for the team still had to sell TV rights to make money to buy players to get to this point.
https://www.forbes.com/sites/zakgarnerpurkis/2022/07/22/a-500-million-clue-why-fc-barcelona-can-afford-so-many-players/
this is like Valorant giving each team a chunk of viewership money and a team literally selling stake just to afford to buy players. it shows how bad it is. now in 2024, 2 years later, yes they are finally in the profit but like I said, this is a record breaking year. what if everything goes down even 10%? they are immediately unprofitable again. we have seen this in other esports, Copenhagen Flames + ENCE were profitable for a year and immediately weren't again because the business is volatile.
what other points do you have?

oh yeah another note
Camp Nou is literally funded by a bunch of investment companies which FC Barca has to pay back

Barcelona added that they signed the agreement with 20 investors, including Goldman Sachs (GS.N), and JP Morgan (JPM.N).
The Spanish club are set to pay back investors in progressive tranches - after five, seven, nine, 20, and 24 years - with a flexible structure, including a grace period.

them making 300m this year which they have to put towards paying off their already massive debt doesn't mean much when they still have that to pay off in the future as well.

another thing to bring up, most sports teams also get massive tax deductions which helps a ton, which brings it back to funded by government as they want to keep these teams going since it brings cities itself revenue.