In 2024, esports continues to gain momentum, becoming an increasingly popular and profitable industry. The rapid growth of interest in esports competitions from both viewers and sponsors creates a favorable platform for the development of esports organizations. Along with this, the variety of ways to earn money in the esports industry significantly increases.
In addition to traditional sources of income, such as prize money and sponsorship contracts, esports organizations are finding new opportunities to monetize their activities. Selling merchandise and souvenir products is becoming increasingly profitable, and esports teams are actively involved in revenue sharing in tournaments and the sale of in-game items.
At the same time, player transfers between teams are becoming one of the most important sources of income for esports organizations. Established structures in the industry allow professional players to move from one team to another for significant sums, which is not only a source of income for the player but also for their former and new teams.
In turn, betting enthusiasts can also earn money on esports by placing bets. The bookmaker Mostbet offers excellent opportunities for esports betting; all you need to do is install the mobile application – https://mostbet-bd.app/.
Merchandise Sales – Intangible Assets
Another source of revenue for esports organizations is the sale of official merchandise and souvenir products aimed at loyal fans. Popular items include T-shirts with team logos and emblems, as well as other clothing items like caps and hoodies.
The North American organization 100 Thieves is among the teams actively developing their own clothing lines as a way to diversify their income. Such collectives position themselves not just as esports brands but as full-fledged lifestyle projects.
Successful merchandise sales can also be used to attract more lucrative sponsorship contracts, where partners pay for placing their logos on popular team clothing. There is a growing trend of collaborative capsule collections with other brands – for example, between Team Liquid and Marvel or G2 Esports and Ralph Lauren. According to media reports, the Foundations line brought 100 Thieves $2.5 million in one month in 2021.
Share from Tournaments and In-Game Sales
With the growth of the industry, many game publishers have created their own franchised leagues, such as the LEC in League of Legends or MPL in Mobile Legends. To participate in such tournaments, esports organizations must make a substantial contribution – the so-called buy-in.
In return, the team receives a guaranteed place in a prestigious league and a share of the tournament’s revenue, as well as the opportunity for more lucrative sponsorship deals and profits from selling in-game items related to the tournament theme. For example, after the success of the VCT 2023 Champions Bundle, Riot Games shared $33 million with partner organizations.
However, this model has its drawbacks – a limited number of participants, high dependence on the popularity of a particular discipline, and the risk of limiting opportunities for newcomers to the esports ecosystem of the game. Some leagues, such as Overwatch or Clash Royale, have subsequently transitioned to a more open format. But overall, partnerships with publishers provide teams with access to a stable financial resource.
Player Transfers as a Source of Income
Finally, another common source of income in professional sports is player transfers between teams. Like in traditional sports, esports players often sign long-term contracts with clauses specifying a buyout fee that another organization must pay for the right to transfer the player.
Details of most such deals are usually not disclosed. One of the few exceptions was the transfer of professional Dota 2 player Ame from LGD Gaming to Xtreme Gaming, which, according to estimates, amounted to around half a million dollars.
Overall, as esports disciplines mature, the processes of player transfers between teams become more systematic and transparent. For example, in the Chinese Peacekeeper Elite League, there is a special transfer period to organize squad exchanges. In the latest one, the All Gamers team acquired former LGD player ChengC for $1.23 million.
In conclusion, it can be said that a successful esports organization must effectively combine and diversify various sources of income to ensure long-term financial stability in this rapidly evolving industry.
