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How Esports Teams Make Money

The esports industry has grown tremendously over the last decade. According to Newzoo, esports generated a revenue of $856 million in 2018, with revenues expected to reach $1.79 billion by 2022. Where does this revenue come from? In this article, we will break down some of these teams’ revenue-generating channels and learn how esports teams make money.

How esports teams make money: sponsorships

Sponsorships are a significant revenue source for esports teams. In fact, the total sponsorships spent on esports teams in 2019 was $465.7 million. Depending on the esports team, it can be picky about the brands it wants to work with based on the public image it wants to portray.

Often, the more successful an esports team is, the better the brand sponsorships it can secure.  Sponsorships can include product placements, players using a company’s gear to play, and product reviews. Most esports partnerships are with electronic and hardware companies.

How esports teams make money: advertising

Advertising reportedly accounts for about 39% of esports revenues over the last few years. With advertising, a brand pays a media outlet to feature its brand during critical times in the game and during breaks.

Esports teams also make money when brands feature their product in streaming content that is presented to viewers.

Tournaments

Tournaments are another way esports teams make money. Esports come with a significant cash prize for the winners. When a team member wins an esport tournament, a share of their winnings goes to the player’s team.

Winning a tournament also helps esports teams find additional brand sponsorships which are a more lucrative source of revenue.

Tournaments, however, are not a major source of revenue due to the competitiveness of the industry. Top teams which regularly win tournaments have high-quality players who are usually hard to find. However, tournament winnings are motivating factors for esports gamers who are trying to break into active gaming.

Streaming and Content

Streaming and content creation are major sources of revenue for esports players. The main goal for streamers is to build a consistent audience which makes it easier for esports teams to secure brand deals and sponsorships. Most streamers often serve as brand ambassadors, and there are product placements during the stream.

Ticket Sales

Esports attract massive audiences around the world. For instance, in the 2017 League of Legends World Championship, an estimated 80,000 fans attended the in-person event while an estimated 90 million fans viewed the tournament online. Esports teams monetize these audiences through ticket sales to esports events and tournaments.

Selling Merchandise

Another way esports teams make money is by selling merchandise. Popular teams with a loyal fan base have an easier time making money creating different products. Popular merchandise items range from t-shirts to caps, to jerseys, hoodies, and mouse pads.

Fans also buy in-game skins that they use to show their support to their favorite teams.

Broadcasting Rights

Esports audiences are a major source of revenue for esport teams. As most of the audiences interact with their favorite esports teams online, media and broadcasting rights become a major source of revenue.

Esports organizations negotiate with broadcasting or streaming networks to reach these organizations. Twitch and YouTube are the most popular platform on which esports teams interact with their audiences.

The teams then make money through monthly subscriptions, donations, and ad revenue.

Summary

There you have it; those are the most popular ways esport teams make money. Most teams use a combination of most of these revenue-generating activities. For instance, a team could be streaming on Twitch, have an active subscription program, and deal with sponsors and partners. Do you know of other ways esports teams make money?

 

 

 

Benefits of Esports 

For years now, gaming has had a bad rap as the reserve of couch potatoes. But with more research into the effects of playing video games, many are realizing that gaming can be beneficial for children and adults alike. So, what are some of these benefits of esports?

Benefits of Esports: Improved Hand-Eye Coordination

This is perhaps an obvious benefit of playing esports. If you have watched video gamers, you can tell they have a high level of hand-eye coordination.  This allows them to respond quickly and efficiently within the game.

On top of keeping track of what each hand is doing, gamers also have to keep up with the activity on the screen, which further feeds into the activity of their hands.

Through consistent practice, gamers develop a high level of hand-eye coordination that allows them to keep playing the game.

Such hand-eye coordination is also critical for non-gaming professions which require precise and often fast reaction times, such as flying a plane or operating on a patient. Studies have shown that surgeons who play video games have better hand-eye coordination when performing surgeries.

Benefits of Esports: Improved Mental Health

Esports provide players with mental stimulation which can help improve a player’s mental health. Playing esports helps mental health in several ways as follows:

  • It fosters emotional resilience. The more a player fails, the more he or she develops the resilience to deal with that failure.
  • Playing video games also can improve a player’s mood, which can spill over into other areas of their mental health. For instance, those who struggle with anxiety can benefit from the mood-boosting nature of a game.
  • Video games can help to reduce stress. Players are fully immersed in the gaming environment and plot, which can take their minds off the worries they might be having.

Benefits of Esports: Critical Thinking and Problem Solving

Esports are games of strategy. Competitive gaming requires players to process a vast amount of information, including game processes, players, and the gaming environment. They must take in this information within a short time and make split-second decisions.

Due to this, competitive gamers have high critical thinking and problem-solving skills. They learn to think about their challenges, analyze the entire situation from different perspectives, and make quick decisions. They also go back to their statistics and gameplay to identify their mistakes and sharpen their gaming strategy.

Better Memory

Becoming successful at an esport requires strategy and memorization skills. Players have to know which buttons to press, and who their teammates and enemies are. In addition, they have to understand the game layout and keep that in mind each time they are playing.

This means that the brain has to form additional connections to help them remember each of these elements. Competitive gamers who have been in playing for years can attest to their ability to remember elements of different games.

Career Opportunities

Perhaps one of the most surprising benefits of playing esports is the potential of making a living from these games. Esports are a category of competitive video games where the top players can earn money just as professional sports players can. . Esports players can also make a living out of content creation and as esports managers.

Another way esports supports career development is through the possibility of obtaining a scholarship for high school students. Colleges increasingly recognize top esport talent and provide them with scholarships to join their universities, much as they do with traditional sports like baseball or soccer.

Key Takeaways

The world today increasingly appreciates the importance of video games. Research continues to demonstrate the potential benefits of playing esports and video games in general to the health, wellbeing, and professional lives of gamers.