this post was submitted on 16 Jun 2023
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The streamer who spent $1M on an esports team says esports is a terrible business: ‘Everyone is losing a lot of money’ (www.pcgamer.com)
submitted 2 years ago by [email protected] to c/[email protected]
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[–] [email protected] 4 points 2 years ago (1 children)

I know Ence is one team in CSGO who's generating profits. They are a smaller orgs that has in game success.

I think the issue is you have some teams full of venture money that inflates the salaries and makes it super hard for other teams to have in game success while not going broke.

That being said my suggestion for csgo (it's only scene I follow) would be leagues line in traditional sports. Each team plays a game every week and you have playoffs at the end of the year. Put those league games on your own platform and have people pay a subscription to watch. I would pay up to 100$/year (I'm aware I'm the exception). With this model you might even be able to have a few hubs where games are played at a small venue in front of paying crowd. I could imagine a few hubs where teams would move to to play regularly. Something like: New York, Rio, Malta, Copenhagen, Moscow

I think one of the biggest problem is demographics, the younger generations that's in eSports is broke. No eSports fan is going to buy a Dodge RAM (using this as an example because traditional sports are littered with pick up ads and the car industry is a huge advertiser because they need to constantly gaslight people into thinking that driving isn't a chore)

Edit: mistakenly posted this on a comment before

[–] ascagnel 4 points 2 years ago

I think the issue is you have some teams full of venture money that inflates the salaries and makes it super hard for other teams to have in game success while not going broke.

This is almost what happened to the NHL in the mid-00s, and caused them to skip an entire season. The big teams (with outside revenue, which is basically the same as VC funds in this case) used that outside revenue to try to buy the best players with big paychecks (on the assumption that financial success would closely follow competitive success), setting off an arms race that almost got to the point that a third of the teams in the league would have folded within two years.