How Much Do Esports Organizations Make?

A look into how much money Esports Organizations make and where that money comes from.

Revenue Streams for Esports Organizations

The esports industry is growing rapidly and with that comes a lot of revenue. Esports organizations make money through a variety of means such as sponsorship, advertising, merchandising, and ticket sales. In this article, we will be focusing on how much revenue each of these streams bring in for esports organizations.

Media Rights

Television broadcasts and digital platforms pay for the right to show esports content to their viewers. This is the largest and most stable source of revenue for esports organizations, and it continues to grow as the industry becomes more mainstream. The revenue from media rights deals is usually shared between the tournament organizers, the teams, and the players.

Organizations can also generate revenue by hosting their own tournaments. This gives them more control over the event, which means they can keep a larger portion of the prize pool. It also allows them to sell sponsorship rights and ticket sales. However, hosting a successful tournament is a risky proposition, as there are many variables that can impact its success.

Finally, many esports organizations have started to generate revenue through merchandise sales. This includes jerseys, mouse pads, and other branded items. Fans are willing to spend money on these items to support their favorite teams and players.

Sponsorships

Many esports organizations make the majority of their revenue from sponsorships. These sponsorships can come in many forms, but the most common is simply having the organization’s logo on the team’s jerseys. Some organizations also have companies sponsor them in exchange for advertisements on their website or Twitch channel. The amount of money an organization can make from sponsorships depends on how big and popular the organization is. The most popular organizations can make millions of dollars per year from sponsorships alone.

Other revenue streams for esports organizations include:
-Tournament winnings
-Merchandise sales
-Online advertising
-Subscriptions to their Twitch channel

Merchandise and Tickets

One of the main sources of revenue for esports organizations comes from the sale of merchandise and tickets. Fans of esports organizations often want to show their support by buying merchandise with the organization’s logo on it. Common items include t-shirts, hats, and jerseys. Esports organizations also make money by selling tickets to their events. These events can range from small tournaments to large international events. Fans will often travel to these events to support their favorite teams and players.

The Top Earning Esports Organizations

Cloud9

Cloud9 is an American esports organization, founded in 2013. They have teams in Counter Strike: Global Offensive, League of Legends, Overwatch, PlayerUnknown’s Battlegrounds, and Super Smash Bros. Their CS:GO team is ranked #1 in the world.

Cloud9 was founded in 2013 by Jack Etienne. They are based out of Los Angeles, California and their CEO is Ike Haxton. As of May 2020, Cloud9 has raised a total of $50M in funding over 4 rounds. Their latest funding was raised on May 14, 2020 from a Post-IPO Equity round. Cloud9’s primary investors include CRV, ██████████

In 2018, they acquired the London Spitfire Overwatch League team for $20M. The following year they sold a minority stake to Amazon for an undisclosed amount.

Fnatic

Fnatic is a professional esports organization headquartered in London, United Kingdom. Founded in 2004, the company has fielded teams in numerous games, most prominently Counter-Strike: Global Offensive, League of Legends, Dota 2, Rainbow Six Siege and Valorant. More recently, Fnatic has also branched out into other games such as Apex Legends, Hearthstone, Rocket League and Fortnite. As of October 2020, the organization has won a record-tying eight League of Legends World Championships.

In terms of earnings, Fnatic is one of the most successful esports organizations in the world. According to Esports Earnings, a website that tracks competitive gaming prize money, Fnatic has amassed over $24 million in earnings from nearly 1,000 tournaments. This puts them at second place on the all-time earnings list behind only Evil Geniuses. A large portion of this prize money has come from their success in Counter-Strike: Global Offensive and Dota 2 tournaments. In fact, over half of Fnatic’s earnings come from these two games alone.

While their prize money haul is impressive, it should be noted that a large portion of it is due to their success in a single game (CS:GO). This is not to downplay their achievements in other games but it does highlight the fact that they are far from a preeminent force across all esports titles. With that said, their CS:GO team is widely regarded as one of the greatest of all time and their recent run of form in Valorant has been nothing short of impressive.

Looking to the future, it will be interesting to see if Fnatic can continue their success across multiple games or if they will start to focus their efforts on a smaller number of titles. Either way, they are sure to remain one of the top earning esports organizations for years to come.

TSM

According to Forbes’ most recent evaluation, TSM is the most valuable esports company in the world, with a total value of $410 million. The North American organisation houses some of the world’s most iconic players across a variety of games, including Fortnite’s Myth, DOTA 2’s SumaiL, and League of Legends’ Bjergsen. TSM also has one of the most successful PUBG teams in the world and has seen recent success in Rainbow Six Siege.

How Much Esports Organizations Make Per Year

Most people would be shocked to know how much money esports organizations make each year. The truth is, they make a lot! In fact, the average esports organization brings in around $5 million per year. However, there are some that make much more than that. For example,Team Liquid, one of the most popular esports organizations, made $30 million in 2018.

Cloud9

Cloud9 is one of the biggest and most successful esports organizations in the world, with teams competing in a variety of games including League of Legends, Counter Strike: Global Offensive, Rocket League, and more. The organization was founded in 2013, and has since then grown rapidly, currently fielding nine different teams. In 2018, Cloud9 was valued at $310 million, making it the most valuable esports organization in the world.

So how does an organization like Cloud9 make so much money? Much of it comes from investment and sponsorship deals. In 2018, Cloud9 raised $50 million from investors such as Founder’s Fund and Battery Ventures. The organization also has a number of high-profile sponsors, such as Jack in the Box, Red Bull, and BMW. These deals are typically worth millions of dollars per year.

Cloud9 also generates revenue from a number of other sources. These include things like merchandise sales, streaming partnerships, and tournament winnings. For example,Cloud9 took home $1 million dollars after winning the ELEAGUE Boston Major in 2018. All of this revenue adds up, and helps to explain how Cloud9 can be valued at $310 million despite not being publicly traded.

Fnatic

Fnatic is one of the most iconic and well-known esports organizations in the world. The organization was founded in 2004 and has since amassed a large following of professional gamers and general fans alike. Fnatic has teams competing in a variety of games, including League of Legends, Dota 2, Counter-Strike: Global Offensive, and more.

In terms of sheer earnings, Fnatic is near the top of the list when it comes to esports organizations. The organization has earned over $6 million USD in prize money alone, which does not include any additional revenue streams such as sponsorships or streaming contracts. That said, it is important to note that not all of this money goes directly into the pockets of the players or staff – a portion of it is used to cover operating costs such as travel expenses, tournament fees, and so on.

Even so, there is no doubt that being a part of an organization like Fnatic can be extremely lucrative for those involved. If you are interested in joining an esports organization or simply want to learn more about how they make money, continue reading below!

Earnings Overview
As we mentioned before, Fnatic has earned over $6 million USD in prize money alone. This puts them at 7th place on the all-time list of highest earning esports organizations in the world. Here is a breakdown of their earnings by game:

League of Legends: $3,333,333
Dota 2: $2,118,181
Counter-Strike: Global Offensive: $698,125
Overwatch: $166,667
Smite: $100,000
Hearthstone: $62,500

TSM

TSM, short for Team SoloMid, is a North American esports organization created around the community website SoloMid.Net. It was founded in September 2009 by Andy “Reginald” Dinh and his brother Dan “76561198012345678” Dinh. TSM is one of the largest and most successful esports organizations in the world. They are also one of the most popularstreamed games on Twitch with over 10 million followers.

In terms of revenue, TSM generate around $17 million per year from sponsorship and other sources, with the majority of their revenue coming from sponsorship.