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How Esports Teams Make their Money

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Esports is a multi-billion dollar industry. Esports is growing in popularity, with tournaments drawing large audiences and teams gaining huge sponsorships from large companies.

The most popular esports games are played globally and have amazing betting guides, with fans from different countries participating and watching them online. Some of the most prominent esports competitions include The International (Dota 2) and League of Legends World Championship Series (LoL).

Esports has been considered to have high growth potential due to its mass appeal and global reach. Esports are on the rise, but one question remains; how do they make their money?

Selling Access to Live Events

A large portion of revenue for esports teams comes from selling tickets or broadcasting rights for their live events. These can range from small in-person tournaments with relatively low production value, for example, the Smash Bros Melee tournaments, to massive stadium-sized competitions.

Another way esports teams make money is by paying players salaries. Teams player’s wages to keep them on their rosters and ensure they stay competitive. This can range from hundreds of thousands of dollars per year for top-tier teams.

Selling Player Merchandise

Selling player merchandise includes everything from player-branded clothing and hats to team-branded accessories. The most common way for this to work is when a player decides to sell their merchandise in addition to representing the team.

Players can sell their brands of gear on their websites, as well as an esports organization selling branded apparel through its online store.

Sponsorships

Sponsorships are the most significant source of income for esports. They’re usually short-term but can also be long-term, depending on various factors. Sometimes they’re monetary, and others are non-monetary.

Local sponsorships can be within one region or province. Regional sponsorships include multiple areas across a continent or country, while national sponsorships are found on a national level in some countries. For example, soccer teams are sponsored by major corporations like Coca-Cola.

These would have local reach and international reach since they’re famous enough to be recognized around the world. Global sponsorships are when you see something like “This video game was made possible by…” at the beginning of your favorite streamer’s videos.

Companies sponsoring a team want worldwide exposure. So, they’ll likely choose someone who has vast followership across all social platforms, such as YouTube Gaming or TwitchTv.

Licensing

If a company wants to sell its product or brand, it must first license the rights to do so. The process is simple; one party grants permission to another party to use a trademark in exchange for money. Licensing is a great way to make money from your brand, and esports are no exception!

Some famous brands that have licensed their products include Coca-Cola and McDonald’s. Licensing can also be used. An effective marketing strategy for expanding your current audience and reaching new ones. 

You can provide official apparel, accessories, and other gears that fans can buy online or in stores. 

It’s essential for esports because they need all the exposure they can get!

Intellectual property 

Intellectual property is the legal right to an idea. It can include anything from a song to a game, and it’s used in esports to protect teams from copycats.

For example, if you had a fantastic idea for a new FPS game with all these great features, but someone took it and published it as their work before you did, they could sue you for using their intellectual property.

There are also non-game-related types of intellectual property like merchandise and music rights. They are sold separately from teams’ sponsorships and streaming deals.

These can be lucrative sources of income for esports teams because they’re unlikely to compete with other projects that have nothing directly related.

Tournaments Winning

Esports can also generate revenue from winning tournaments whenever they compete. Although it’s not a consistent source of income for esports teams since they might not succeed in every game, the tournament winnings can sustain the time.

Players are motivated to stay competitive and win more for the team to run its activities smoothly and for the players to make a sustainable career in the esports world.

Conclusion 

Esports, previously considered a fringe activity for nerds, has become a multibillion-dollar industry. Many people are still surprised to hear that it’s possible to make money playing video games, but the truth is that this has been an emerging market for many years now. 

Esports’ popularity is growing exponentially, and it will soon be one of the largest entertainment sectors in the world. But how are these players paid? It turns out they have various ways to make their money!

eSports

IESF Kicks off Bidding Process for 2025 and 2026 Events

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The International Esports Federation (IESF) has officially launched the bidding process for the next two editions of the World Esports Championship and Regional Qualifiers. Cities interested in hosting IESF’s flagship event can learn more about the bidding process on the IESF Events Bidding Process page.

WEC, a long-standing tradition of competitions watched across the world, creates a direct opportunity for the host to link its city brand to the IESF Realm, multiple game titles, and some of the world’s best athletes.

IESF remains open to discussions with any cities, regions, or countries worldwide that are interested in hosting the World Esports Championship or Regional Qualifiers. We welcome inquiries from all potential hosts to explore the opportunities and benefits of bringing these premier esports events to their locations.

IESF General Secretary Boban Totovski said: “After Bali, Iasi, and Riyadh this year, we are all looking forward to our next host for the 17th World Esports Championship. We already have many cities waiting for the process to start bidding and we are all very excited to start the negotiations and discover where will the IESF flag go on the 19th of November in Riyadh, on the closing ceremony”

IESF assesses potential hosts based on several criteria, including how well they align with regional and national development plans, as well as the long-term strategic goals of the IESF vision and mission. The host city is expected to meet all requirements set by IESF. The final selection of the host city is made by a vote from the IESF Board.

The 2023 World Esports Championship in Iași, Romania, was a unique experience, attracting over 100,000 attendees and amassing an impressive 35 million viewers across all platforms. This year, the championship moves to Riyadh, Saudi Arabia, promising to be the biggest event yet with a record 130 nations and over 600 players competing, solidifying Riyadh as this year’s Esports capital.

Which city will rise to become the next epicenter of esports excitement?

 

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eSports

Skyesports Championship 2024: Aurora Gaming and 3DMAX Become First Teams to Advance to the Playoffs

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The Skyesports Championship 2024, a $300,000 international Counter-Strike 2 esports tournament, is taking place at the Taj Lands End, Mumbai from July 24 to 28. As the Group Stage nears its conclusion, two teams have advanced to the prestigious Playoffs, where they will battle for glory and a shot at the lion’s share of the prize pool.

Serbia’s Aurora Gaming and France’s 3DMAX Vie for Glory: First Teams to Reach the Playoffs

Aurora Gaming and 3DMAX have earned this accolade with flawless records so far in the Group Stage.

The 11 participating teams, which include prominent esports organizations from Mongolia, France, Turkey, India, and Russia, have been split into two groups: A and B.

In Group A, Aurora has secured their spot in the Playoffs after convincing victories against Parivsion, ENCE, and True Rippers, standing first in their group with a 3-0 record. With their advancement to the next stage, Aurora is eyeing a consecutive third trophy in Skyesports’ IPs, having previously won the $350,000 Skyesports Masters 2024 and the Skyesports Grand Slam 2024 in Pune, India.

All eyes are still on Group A as teams like The Mongolz and ENCE have to battle it out on Day 3 to make it to the Playoffs.

In Group B, 3DMAX has triumphed over Amkal, DMS, and Revenant Esports, securing a 3-0 record at the top of the group.

The action continues in the Skyesports Championship on Day 3, as the final day of the Group Stage will decide who will join 3DMAX and Aurora Gaming in the Playoffs. Fans can catch all the action live on the Skyesports YouTube and Twitch channels.

Unlike the Group Stage, the Playoffs will take place on the main stage at the prestigious 5-star hotel, the Taj Lands End in Mumbai, India.

Group A Standings

Group B Standings

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eSports

THE DOTA 2 VIRTUAL HALL OF FAME: GG.BET AND DOT ESPORTS PRESENT 50 WORLD RECORDS

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Dot Esports, the leading esports news outlet, and betting brand GG.BET have created a virtual hall of fame to celebrate 50 Dota 2 World Records. Check it out to discover the stories behind the most impressive feats in the game’s competitive history and watch videos of when they happened.

The Dot Esports team have painstakingly selected and presented Dota 2 records in 5 categories: players, teams, tournaments, content creators and talent. You can find a list of the extraordinary individuals and organizations in each one, as well as dive into the events that have made Dota 2 a Tier-1 esports discipline on the world stage.

GG.BET press office:  “Although Dota 2 was released over 11 years ago, it continues to rank among the top games in the esports community. As we wait for the biggest tournament of the year, The International 13, to kick off, we’ve decided to look back and reflect on the most remarkable milestones throughout the competitive history of Dota 2. Did you know that the fastest time a match was won was in less than 8 minutes? Or that there’s a team that’s played 2813 professional matches? The experts at Dot Esports will tell you all about this and much more in our joint project. We’re delighted to support the creation of such insightful content.”

Jody Rones, CRO at Dot Esports:  “From its humble beginning as a fan made mod to one of the largest games in the world, DotEsports is thrilled to partner with GG.BET to shine a light on DOTA and its community as it passes its 11 year mark. From the content creators, to the team, players, tournament organizers, shout casters and more, they’re a key part of what makes this esport great, and we couldn’t be more thrilled to give them the recognition they deserve with the launch of the collaborative DOTA World Records.”

50 Dota 2 World Records is already available on the Dot Esports website in English and Ukrainian.

Before the end of the Counter-Strike: Global Offensive era and the transition to CS2, Dot Esports put a spotlight on 50 CS:GO World Records in collaboration with GG.BET. This project got a great reaction not just from the esports community, but from the players and teams themselves.

 

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