The cost of owning an E-Sport team.


The cost of owning an E-Sport team.

E- Sports are an expensive engagement. This is because of the costs in the running and maintenance of the teams. This is because there are different variables that affect the business of E-sports. The most crucial variable is the environment in which the E-sports are going to operate in, the number of tournaments where local or international that the teams will be competing in as well as the team goals that one has in mind.

An example of a renowned – sports that can comfortable be used to estimate this cost is the League of Legends series. In this league, there is a two case scenario. The League of Legends as well as the Challengers series. In the two scenarios, the costs differ. This is because unlike in the Challengers Series where one is just requited to have a compact team, the league of legends mandates one to include a coach in their expenses. Majority of the operating costs is in the salary bulk. This is because the players have to be compensated for their participation in the games.

A team for this league released their financial details that stated the compensation for their players. Their Challengers Team is remunerated higher than the League of Champions team primarily because of the demand placed on the challenger’s team that is not placed on the League of Champions team. A yearly calculation can be estimated to be as follows: Each player is expected to cost around $61,600 in the lowest end while in the highest estimation it is estimated that a player costs around $79,200. This means that if an E-sport team is made up of five players then the total estimated costs in salaries ranges from $308,000 to $396,000. However, this cost is inclusive of any bonuses gained.

The housing of the team is another costly affair. In case the team is housed in a five bed roomed apartment, the cheapest goes for around$240,000 while the most expensive one goes for around $360,000. However, there are cheaper housing apartments and the costs vary depending on the location of the house.

As required by law, the players must have a health insurance care plan. This goes to around $3000 per member of staff. Supposing that a team is made up of five members the costs comes to around, $15000. However, most e-sports teams have an inclusive support team such as doctors and in-house chefs. On average, most teams have around 30 employees in total,. This means that minus the total insurance cover inclusive of the teams goes for around $60,000 on the upper scale.

The total costs come up to a range of around $624,000 to $850,000. However these overhead costs have not included the office location expenses and sundry expenses such as meals and travelling expenditures among others. However, the emergent niche of e-sporting is proving to be a venture that is attracting more investors. The influx of new investors in the industry is a testament that although e-sports have a fair share of running costs, the returns are almost hundred percent guaranteed.