https://x.com/sheep_esports/status/1838273059507052549?s=46
Orgs are simply not profitable.
FNC has a huge fanbase, is well run, doesn't make massive splashes and is one of the most legendary orgs there is
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Realistically the only way for ORGs to be successful financially is through the content side of things. Look at Sen, they are probably the more successful org in valorant and literally all of that comes from all of the content creators they have and the content they post on their own company socials.
only way to make profit in esports is to invest little/no money into players (give them barely livable wages), never pay buyouts for top players, have insane scouting, sell those players to other clubs for profit, repeat, only do this in games you have specialties in so you have minimal failures, have an extremely small staff team, force all players and staff to make content and build a brand (optic/faze). good example of this is paper rex, but they could do a better job of doing media imho
LOUD is more "profitable" than a lot of orgs but they definitely aren't making a profit due to LoL salaries and how little of the players they have that are being paid off by being sold, even if it is some big names. in general they're doing great and orgs with stream heads is REALLY good (such as KC as well) to build branding and media that creates revenue but I think LOUD pays too much + doesn't sell enough + some of their teams are unprofitable.
still a top org investment wise after all of this.
It doesn't take a McKinsey analyst to understand there's not really any consistent income any orgs can have, while equipments and studio cost are crazy and the players are paid like they're Google employee 😂.
So you're draining money with nothing to replace them.
And even if they do e.g merch. The cost of producing one will eventually outpace the revenue.
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