There’s no doubt about it – global eSports revenues rose dramatically in 2019, up 27% compared to 2018, according to Newzoo, a gaming industry analysis company.
Popular leagues are taking the industry by storm like League of Legends, Counter-Strike: Global Offensive and Fortnite leading the way. Additionally, major global brands like Coca-Cola (KO) – Get Coca-Cola Company Report , T-Mobile (TMUS) – Get T-Mobile US, Inc. Report and Toyota (TM) – Get Toyota Motor Corp. Sponsored ADR Report , among others, are investing hundreds of millions of dollars in sponsorship money.
With plenty of cash flowing into the picture, how do eSports teams and players earn money? Primarily, through capitalistic means that any American would recognize:
- Cash prizes. There is no shortage of prize money available to eSports gaming participants, with single-game cash earnings up to $200,000. Some high-level competitions, like Dota 2 International, earns $10 million to the competition’s winning team.
- Team salaries. eSports offers regular salaries to team participants, with average salaries in the $3,000-to-$5,000 monthly in gaming hotbeds like China and the U.S. Top echelon players can earn much more, up to $15,000 for a single competition plus bonuses. Some teams even offer their players perks like health insurance and retirement plans.
- Sponsorship money. With major global brands in the picture, eSports is raking in the sponsorship cash. Some of that money goes into competition and cash prizes, and some go directly to team ownership, as is the case with Audi and its sponsorship of Astralis Counter Strike franchise. Sponsors comprise $456 million of the overall $1.1 billion in eSports revenues this year, Newzoo reports.
- Digital streaming. Online competition has also spawned a highly effective and organized network of digital streamers who can earn $4.99 per month per viewer and show eSports competitions via platforms like Twitch. Advertising and investment dollars are also starting to flow into the eSports arena.
- Media rights. According to industry statistics, media rights encompass one-fifth of revenues earned by eSports companies and players. Mostly, media rights money is paid out to event organizers and game developers, who pass on some of the cash to teams and players in the form of prize money and bonuses. According to Newzoo, media rights comprise $251 million of the $1.1 billion total eSports revenue in 2019.
- Merchandising and tickets. At $103 million in revenues in 2019, merchandising and tickets are among the top tier leaders in eSports payouts. That said, merchandising usually follows the ascension of a sport, as it historically has on the PGA tour, in the NFL and NBA, and in other popular professional sports leagues. Expect both merchandising and ticket revenues to climb as gaming continues to flourish on a global stage.
Merchandising companies like 100 Thieves have already translated the popularity of eSports to the masses – its signature shirts are already a common site around the world and are reportedly often worn by other professional athletes. That’s a sure sign merchandising should be a cash cow for organized eSports for years to come.
With sponsorship cash and gamer salaries stacking up, it’s worth noting the big financial winners in the eSports market – the players.
These players are the highest income earners in the gaming realm, making millions in the process.
Johan Sundstein. Sundstein, also known as NTtail, to gaming fans, is a highly popular and successful “Defense of the Ancients 2,” (more commonly known as “Dota 2”) game player. The 26-year-old has earned almost $7 million playing in 108 tournaments to date, making him king of the hill in the eSports earning game.
Jesse Vainikka. Also known as HerAx in the Sports world, the 27-year-old Finland native has earned $6.47 million competing in 64 eSports tournaments. Like Sundstein, Vainikka is one of the most accomplished “Dota 2” players in the world.
Anathan Pham. Known simply as “ana” by gaming enthusiasts, Pham has earned $6 million. At 19 (Pham turns 20 on Oct. 26) Pham is one of the youngest players on the eSports tour. He’s also earned $3.14 million so far in 2019 alone.
Sebastien Debs. At $5.5 million in career earnings, “Ceb” Debs clocks in as the fourth-highest income earned in the eSports arena. Competing as both a coach and a player, the Frenchman won the prestigious International “Dota 2” event in 2018 and 2019, as a member of team OG.
CREDIT: This article first appeared at WWW.THESTREET.COM