What follows is an article about the ten largest sports teams in the world of Esports: worth 1.570 million and $ 124 million
The boom in the Esports sector can be seen not only in the millions of audiences it accumulates but also by the amount of money it starts to move. Seven-digit sponsorship agreements, large investment rounds, millions of dollars’ franchises, sale of allowances, etc.
But the arrival of more money in the sector is not enough for teams to make a profit. In fact, the vast majority are in deficit. The salaries of players, who consume half the budget of the clubs of Esports, are the big burden for the accounts, and what has triggered the holding of investment rounds.
The Esports sector closed 74 rounds of investment in 2017, worth 1.520 million dollars
In fact, 74 such agreements were concluded in 2017, most of them with business angels and venture capital funds, worth 1,520 million, according to PitchBook data collected by Forbes. So far in 2018 have already closed 63 transactions valued at 2.340 million dollars. To see the evolution, it is enough to point out that in 2008, there were six businesses worth $ 34 million.
The industry’s top managers are not afraid to dilute their actions. “They are clear that they prefer to have 20% of something worth 1 billion to 100% of something worth 100 million,” Forbes says.
The prestigious financial portal has calculated, which are the most valuable sports teams in the world and the revenues they generate. In total, the ten teams most outstanding totaling an aggregate value of 1.570 billion USD (1.366 billion euros, approximately), while the revenues estimated for 2018 amounting to 124 million us dollars (108 million euros).
Cloud9 has managed to close a $ 50 million Series B funding round this month. A portion of the investment will be aimed at building large coaching facilities, as well as a base of operations in Los Angeles. This team adds excellent sports results.
Team SoloMid is the only big team that has benefits. Its founder, former player Andy Dinh, works to turn his club into the Dallas Cowboys of the Esports. To achieve this, he relies on the popular video game Fortnite. He has signed Ali ‘Myth’ Kabbani, built a great ‘gaming house’, in which his players live, practice and broadcast, and is already beginning to reap its fruits:’ Kabbani ‘ is the second most popular player in Twitch (4.1 million) and has signed a sponsorship agreement with Chipotle of over a million.
Despite the boom in the sector, sponsorship figures reaching these amounts are very exceptional. One of those who have reached it is 100 Thieves, who have reached an agreement for a similar amount with the Rocket Mortgage brand.
It should also be noted that the G2 Esports team, although based in Berlin, is founded by the Spaniard Carlos ‘Ocelote’ Rodríguez.
But not everything is rosy in the world of Esports. The main dangers facing these companies are the volatility of the games-the one that is successful tomorrow can disappear-and the reluctance of big companies to change their sponsorship of traditional sports to these new disciplines.