How Do Esports Teams Make Money Today?

When esports had just started gaining international attention, sceptics were confident that it wouldn’t last. Surely playing computer games could never come close to traditional football or baseball matches? However, reality proved them wrong: the value of esports is already predicted to reach over 5.9 billion dollars within the next couple of years, and by 2029, this number will increase further.

With millions of fans filling the stadiums to watch yet another e-battle, people began to wonder: do esports teams make money? The short answer is yes, they do, and their financial opportunities keep growing. It’s not just about prize winnings; there are multiple ways of getting paid. 

Interested in getting a longer answer on how esports teams make money? Then this article is for you.

Primary Revenue Streams for Esports Teams

Here are the primary streams of revenue that help earn esports money.

Tournament Prize Pools

The most obvious way for esports teams to make money is to win the tournament. There is a hefty prize pool waiting, and its sum is based on a team’s popularity and the scale of competition. 

For example, international Dota 2 matches can bring millions to their participants — the problem is, these prizes are inconsistent. Even the most experienced teams face unexpected problems like roster changes and plain misfortune. That’s what makes e-players look for extra sources of income. 

Sponsorships and Partnerships

Whenever something becomes popular, sponsors come sniffing. After determining which esports orgs are profitable, they offer partnerships, and in exchange for financial help, they get a chance to advertise their brands to worldwide audiences. 

There are multiple types of sponsors interested in supporting specific esports teams. Online casino and bookmaking platforms hold a leading position in this area since they operate in a related niche. Fans of esports can find unique offers from global casino brands such as Energy Casino: 50 free spins to receive welcome bonus and an opportunity to support their favorite esports teams while making money for accurate predictions. Playing casino games of this kind makes the process of watching the tournament even more rewarding, leaving both sponsors and fans happy.

Other common esports sponsors include energy drink companies like Red Bull, gaming equipment manufacturers like Logitech, and tech brands like Intel. Sponsorship revenue in this industry was expected to reach 1.2 billion dollars by 2023, and in 2025, these numbers are even higher.       

Streaming and Content Creation

How to make money in esports in other ways? Content creation is key. This is what the players do:

• Game streams. Platforms like YouTube, Twitch, and Facebook Gaming allow streaming independent matches, and the more viewers join, the more money a player makes.

• Q & A sessions. Players can also do streams and answer their fans’ questions, driving engagement. 

• Vlogs. Having a personal vlog can also generate money as long as a player is popular.

Building a strong online presence can result in consistent revenue generation. 

In-Game Item Sales and Cosmetics

Some esports teams strike partnerships with game developers. The former use the game-branded items produced by the latter, such as weapon skins, outfits, and character icons. This allows generating significant passive income for both parties.

Merchandise Sales

Many esport organizations produce merchandise like jerseys, hoodies, and stylish accessories. This supplies esport teams with stable revenue because passionate fans are always eager to display their support openly by wearing team-related items.  

Revenue Sharing from Leagues

League-based esports revenue sharing is a common business model in which teams earn a portion of the league's profit. It comes from sponsorships, media rights deals, and ticket sales. This approach is mutually beneficial, as the leagues get more loyal teams who can focus on performance rather than worrying about resources. In turn, the teams earn extra money.

Secondary Revenue Opportunities for Esports Teams

How do esports companies make money by using secondary revenue options?     

Fan Subscriptions and Memberships

Esports teams and other platforms can offer paid memberships that provide unique opportunities for fans. For example, popular sports resources have Patreons where readers pay money for exclusive content like news on the latest Dota-related releases from Valve and exclusive videos. Esports players and their leagues offer early access to merchandise or behind-the-scenes footage in exchange for paid subscription.  

Event Hosting and Ticket Sales

How do esports make money? By hosting events, fan meet-ups, and tournaments, the sale of tickets for which brings additional revenue and contributes to community building. Fans pay money to interact with their favorites and walk away feeling even more enamoured, in the company of new like-minded friends.

Costs and Overheads for Esports Teams

How to make a esports team profitable? By understanding its expenses and ways of countering them. The most significant costs come from:

• Player salaries

• Coaching staff and training facilities

• Travel to tournament locations and back home

• Equipment like computers, headphones, keyboards, etc.

Having consistent income is the only way to compensate for these costs. 

Income Disparity in Esports

Do esports orgs make money? Not all of them, no. Unfortunately, there are huge income disparities between top-tier teams and smaller teams across the leagues. As the esports player Andy Collins says, “While some of Valorant's highest-earning players make 6-to-7 figures each year between their contracts, endorsement deals, and lucrative streaming, that's simply not the norm.” 

Smaller teams struggle with earning recognition and attracting sponsors. That’s why they must diversify their revenue streams more actively, building their fan base.

Future Revenue Opportunities  

Non-fungible tokens, aka NFTs, cryptocurrency sponsorships, and virtual reality collaborations are the future revenue opportunities for esports teams. Selling limited-edition player cards, backstage passes, and immersive VR experiences will pay off for sure, and considering the popularity of cryptocurrencies, blockchain gaming projects will also become a reality. 

It’s also possible that a new esports business model will emerge, potentially affecting the distribution of revenue among the teams. Hopefully, this will lead to fewer disparities and conflicts. 

The Income of Current and Future E-Teams

Are esports profitable? They certainly are, which is why teams have many ways to generate income. Striking deals with sponsors like online casinos, launching gaming streams, starting vlogs, and selling merchandise are just some of the options. 

Not every team has such lucrative opportunities, though. Revenue diversification can help: it leads to sustainable growth, and as long as new or smaller teams find a way to stand out and attract fans, they can earn a satisfying sum of money, too.