How Much do E-sports Teams Make?

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 How Much do E-sports Teams Make?

E-sports have really grown both in popularity and prominence in the past few years. More teams, individuals and organizations are joining in on the act because they are slowly realizing that E-sports will be the next big thing. With numerous international tournaments being organized left right and centre, it has become not only an enjoyable sport but an equally lucrative business that thousands are looking to cash in from.

So big is the E-sports business that players are dropping their day jobs to go professional. It is a playing career and one manages his/her team well and plays well in tournaments, they can turn into overnight millions. Just like their real life counterparts, E-sports fan base is growing by day and this only means one thing; increased revenue. So, how much do E-Sports Teams Make? How and who funds their activities?

Depending on the size and how developed an E-Sports team is, they can make anything from as low as $10K to a whopping $10,000,000 a year. Yes, E-Sports team managers and players are taking home a cool 10 million bucks a year. A good example of a prolific team that rakes in an amount like this annually is the Evil Geniuses. Most teams however range in between $500K and $2,000,000 in a year. This begs the question of how such teams get these huge sums of money and who funds their activities. How do they make their money? Where do they get the input capital from?

Well, as we all know, setting up an E-sports team and equip the players with the necessary equipment can be an expensive task. They need top notch gaming computers and other accessories with which to train and prepare themselves for upcoming tournaments. These teams need to thoroughly train and prepare themselves to stand even the slightest of chances to bag a trophy and take home the sum of money we earlier talked about. Here is a breakdown of the main ways in which E-Sports team make their money and fund their activities;

1. Sponsorship

Teams go to the big brands and other market related brands and bid for sponsorship to run their activities. Brands like Samsung, Razor and other big companies that have an interest in selling their products through E-sports grant sponsorship to E-sports teams and these sums of money are in millions.

2. Tournaments

Great E-sports teams make most of their revenue by winning major tournaments and other E-sports competitions. There are very many online competitions which have lucrative prize pools. A good example of a tournament that most E-sports teams make money from is the Dota premier tournament which normally pays handsomely if a team performs well and wins.

3. Donations from fans

E-sports teams set up online accounts and ask their fans to donate a few bucks to help fund their activities. Ardent fans always heed to their call and contribute well. Teams can make up to $10K using this mass funding platforms. It depends on how well they sell their policies to the fans and how many fans they have.

4. Live streaming of games

Using services like twitch, E-sports teams charge a small fund for their fans and other people to live stream videos of their online tournaments. This can help teams run their services and pay the players especially in the low paying season when there are very few tournaments.

All in all, E-sports teams make a lot of money! It all depends on how well they have set up base and the number of fans they have attracted. It is a lucrative business and I won’t be surprised to see more key market players opting for this business.

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