It’s a very interesting read.
TDLR: Money teams used to get from Riot used to be 300k fixed + 400k based on content creation objectives + bonuses for reaching events + bundle and champs skin money. Now the 400k on content creation objectives is deleted and instead the 300k fixed are bumped to 400k
Other stuff he mentions is that teams are not happy because it’s less money and they were given very short notice. Also bundles will most likely have an upgrade for 2025 so they can keep selling them
Good change, content creation by team is kinda bad :/
Just hiring a costreamer that would have costream anyway even without money, isnt a well invested money. Sen did some intresting videos but this money will be probably be better invested somewhere else :/
but I'm open to counter argument in peace in respect if you guys have ideas !
I'm gonna get flamed for this but, Riot kinda did the right thing here.
There aren't many partnered orgs who makes tons of views anyways. Aside from SEN , ZETA , 100T and few others, there aren't a lot of money to be made off their contents.
You don't wanna " sell new gun skin ( DFM phantom skin for example), because :
To me, this seemed like riot finally stop being silly and handling this realistically. Tha's not to say things will stay the same. To quote from Anonimotum :
"From Sheep Esports, we contacted Riot Games, and they made the following comment: “We adjust the team payment structure every year."
I think we need to be worried about clubs financial stability, not about Riot’s financial stability. Them keeping more money instead of giving it out to teams is not by any means something positive. It’s not like mfs at Riot ain’t making more than enough. 15M a year for Riot is no big deal, it’s barely half of what they make off of the champs skin
And about selling other skins. You can doubt how many people are gonna buy them, I don’t, but even if you do. Isn’t selling some and helping the teams better than not doing it? What is the negative part about it? It’s all positives?
(Nvm the math is wrong , for those who have read this initially)(wait maybe my math is right 😭)
"Sales" aren't net profit so we need to add cost. And the costs are surely ain't cheap. So we can just assume riot doesn't make a lot. This isn't league.
Profit are meant to :
If you want to convince shareholders that you are doing good, better pay those dividends(assuming that valirant is handled by separate company , but my point is This money is going to owner's pocket for good or bad reasons)
Or you can reinvest onto valorant back , but DEFINITELY NOT on blackhole orgs.
There is no point in flushing your money to clubs that are essentially blackholes. They ain't producing any content soon and even if they do don't expect a sentinels level of popularity.
Riot is a company , not a charity, I dont know what y'all are expecting when riot's said "partnerships", but my dumbass can guarantee its not sunshine and rainbows type of partnerships. You can't just expect sentinels to carry your club if you can't make money. I think riot partnerships environment is suffering from free rider problem ( look it up its a real term, although it's a bit of stretch(?) in this case)) and this is how riot intends to solve the issue.
But hey , this is just a theory from a marketing major kid who thinks he's smart 🤣🤣🤣😭
You need to add more context to everything you say cause I'm still lost af
Why 60? 12 teams x 4 leagues is 48. 48 x 300k is 14.4M in fixed money they will be giving out. Champs bundle alone raised 20M last year for Riot but it's raising more every year
That alone covers the cost of money they're saving with this change. And no costs are not really a thing, the salary of the people who make the skins is not worth that much. I have no clue but it can't take more than 2 weeks to make between a team. Rest of the year they make other bundles who I'm sure raise way more than 20M each. The profits are massive 100%
And about the orgs, they do need that money to make this profitable. Rn an ascended team has huge costs not covered by that 400k, could be losing almost a million to not even retain their spot. UCAM CEO was saying the other way how the cost for an EMEA team to Ascend in the first year is surrounding 2M iirc
60 ( 12 x 4 leagues + 16 "parts" more for those who qualed to champs) x 300k = 18M
I might be pedantic but salaries aren't just going to people who make the skins, there's a lot more people to pay , and it's not just salaries ( don't ask me what the other costs are, I did an all-nighter on my accounting and forgot them all lol). So yeah I think the cost might not be that high as I made them to be, but it's still high enough for riot to be concerned( speculation).
" " And about the orgs, they do need that money to make this profitable." "
By that point it's no longer profitable, they're just being kept afloat by riot.
Maybe riot tried to allocate that money to somewhere else, no matter how you see it investing them into orgs like mibr, eg and bleed just doesn't make sense.
Riot could be adjusting to the audience(maybe there is a downward trend?) and probably adjust the investments riot should make
at this point, I'm just stating theory as to why riot does this lol
Apart from few teams, content creation doesn't do too much in valorant.... The costreams and watch party are the main parts that brings views, so are the incentives to hold in-person watchparty and co-streams also removed or are those fall into some other category? Also I hope the money gets invested in some way rather than just taking it out
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