Esports Winter is real

#1

Nef0r0

take a look at the North American teams
EG - had to cut costs on their Champs winning team
Sen - needed injections to stay alive
NRG - Chet took a pay cut to afford the buyouts
C9 - CEO admits to cutting costs
G2 - pretty stable but not a franchised team
100T - NadeShot had an hour long podcast on how much money 100T lost on esports
I wonder how these problems might affect the 2027 resigning

#2

Aayan

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man esports is so cooked but its pretty enjoyable so its sad

#3

Nef0r0

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I doubt esports is cooked, just overinflated. The only ones making profits are players and the game developer, Orgs need to jump out of their fucking pants to afford the best players.
IMO the best solution is a clear salary cap, kinda like what F1 does, limit the spending and punish anyone who goes over it

#4

Aayan

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I think a big part of it is how much the players demand in salary, and val has the issue of having their target demographic being young people (don't really have money)

I think val one of the few esports where its probably profitable if done right, but doing it correctly means: promoting your bundle, winning, good content, pushing the personality of the players (streaming or content) and idk if you can get 40 partnered teams to do allat

#5

Nef0r0

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I would say player salary is a huge L in terms of finances, just too high.

#6

JimmytheMick334

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When only the players make money they are the problem. They all make their own money streaming off the backs of the celebrity they get from being part of an org. Whole thing is ass backwards.

#7

Nef0r0

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Riot get their sales, players get their salaries and orgs just get a risky investment . Like i know most football clubs operate in the red as well and take loans, but those are clubs which run for decades, not some child game 'org''

#8

laifu

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there were rumors that G2 couldn't afford to pay all 4 original guard members their lucrative contract, so they chose to cut neT midseason for icy

#9

Nef0r0

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ain't no fucking way, does that mean there is NO financially sustainable org in NA? That's bad...

#10

laifu

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G2 and C9 are somewhat sustainable they just spent a fuck ton of money on counter strike which somewhat made it worse for teams in other titles

#11

Nef0r0

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I doubt snax and malbs costed a lot in buyouts (500k for malbs, idk for snax), c9 tho actaully somehow managed an almost profit for their ru lineup (cost around a million, sold sh1ro for 1.5mil, bought elec+perf for 2mil, sold elec for 1.5mil, so it's actually not a huge minus